Advanced Oil and Gas Accounting: International Petroleum Accounting (1)
Post Graduate Diploma
In Hong Kong (Hong Kong), Durban (South Africa), Dubai (United Arab Emirates) and 7 other venues
*Indicative price
Original amount in GBP:
£ 6,000
Description
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Type
Post Graduate Diploma
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Location
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Duration
5 Days
By the conclusion of the specified learning and development activities, delegates will be able to: Demonstrate a heightened understanding of the differing levels of Financial Reporting Regulation and Standardization, as they apply to Oil and Gas Accounting. Demonstrate a heightened understanding of salient accounting concepts and governance. Demonstrate a heightened understanding of the differing levels of regulation and standardization applied to Oil and Gas accounting.Suitable for: This course is designed for: Finance Directors and Managers. Financial Controller. Chief accountants. Treasury Officers. Asset Accountants. Joint Venture Accountants. Management Accountants. Internal and External Auditors. Government Regulators. Financial Analysts. Public Accountants
Facilities
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About this course
Degree or Work Experience
Reviews
Course programme
Course Contents, Concepts, Issues and Assessment
Accounting Concepts
- The money measurement concept
- The entity concept
- The going concern concept
- The dual aspect concept
- The accounting period concept
- Materiality (Proportionality) concept
- The conservatism concept
- Consistency concept
- The realization concept
- The matching concept
- The cost concept
Financial Governance and Standardisation Institutions
- Financial Accounting Standard Board (FASB)
- The Security and Exchange Commission (SEC).
- Accounting Standards Board (ASB)
- International Accounting Standards Committee (IASC)
- International Accounting Standards Committee Foundation (IASCF)
- International Financial Reporting Standards (IFRS)
- Industry Specific Oil and Gas Accounting Standards
- Generally Acceptable Accounting Principles (GAAP) for Oil and Gas Producing Activities
- Oil Industry Accounting Committee (OIAC)
DRILLING DEVELOPMENT COSTS - SUCCESSFUL EFFORTS
General Contents, Concepts and Issues
Income tax accounting for drilling costs
IDC vs. Equipment
Intangible Drilling Costs (IDC)
(1) Up to an including the installation of Christmas Tree
- Prior to Drilling
- G & G
- Preparation of Site
- During Drilling
- Drilling contractor's charges
- Drilling mud, chemicals, cement, supplies
- Fuel
- Wages
- Well testing
- At Target depth and during completion
- Well testing
- Perforating and cementing
- Swabbing, acidizing and fracturing
- Labour related to the installation of subsurface equipment
- Plugging and abandoning cost - for dry wells
(2) After Christmas tree - following completion
- Removal of Drilling Rig
- Restoration of land and damages paid to surface owner
(3) Wells other than Exploration and development Wells
- Intangible costs for extending well (see lists 1 & 2, above)
- Intangible costs incurred in drilling water supply and injection wells
- Intangible costs incurred in drilling water and injection - where water well is being used to for exploration and development well or for injection.
Financial accounting for drilling and development costs
Well classification
Exploratory well
Service well
Stratigraphic test well
Proved developed oil and gas reserves
Proved undeveloped reserves
Successful Efforts, exploration costs
Exploratory drilling costs
Development drilling costs
Stratigraphic test wells
AFE's and drilling contracts
Special drilling operations and problems
(1) Workovers
(2) Damaged or lost equipment and materials
(3) Fishing and side tracking
(4) Abandonment of portions of wells
Additional development costs
(1) Development costs
- Costs of gaining access and preparing well location for drilling
- Costs of drill and equip development well, development-type Stratigraphic test well
- Cost of acquiring , constructing and installing production facilities, e.g. lease
Support equipment and facilities
Drilling and development seismic
Post-balance sheet events
Accounting for suspended well costs
Interest capitalization
Offshore and international operations
Problems and Issues associated with Successful Efforts Accounting for Drilling Development Costs
PROVED PROPERTY COST DISPOSITION - SUCCESSFUL EFFORTSCosts of Property
Cost of lease and well equipment
Cost disposition through amortization
- Reserves owned or entitled to
- DD&A calculation
- DD&A on a field-wide basis
- DD&A when oil and gas reserve are produced jointly
- Estimated future dismantlement, site restoration, and abandonment costs
- Exclusion of costs or reserves
- Depreciation of support equipment and facilities
- Cost disposition - nonworking interests
- Revision of DD&A rates
Cost disposition through abandonment or retirement of proved property
Successful efforts impairment
Problems
FULL COST ACCOUNTING
Principles of Full Cost Oil and Gas Accounting
Disposition of capitalized costs
- Inclusion of estimated future development expenditures
- Inclusion of estimated future decommissioning costs
- Exclusions of costs
- Impairment of unproved properties costs
- Abandonment of properties
- Reclassification of properties
- Support equipment and facilities
- DDA&A under successful efforts versus full cost
Reserves in place - purchase
Interest capitalization
Limitation on capitalized costs - a ceiling
- Asset retirement obligations
- Deferred taxes
- Income tax effects
- Assessment of the ceiling test
- SFAS No. 144 and Full Cost Ceiling Cost
- Post-balance sheet events and the ceiling test
Problems and Issues associated with Full Cost Accounting
ACCOUNTING FOR PRODUCTION ACTIVITIES (1)
Accounting treatment
- Cost of production versus inventory
- Recognition of inventories
- Lower-of-cost-or-market valuation
Accumulation and allocation of costs
Individual production costs
- Secondary and Tertiary recovery
- Gathering systems
- Saltwater disposal systems
- Tubular goods
- Severance taxes
ACCOUNTING FOR PRODUCTION ACTIVITIES (2)
Production cost statements
Joint interest operations
Decision to complete a well
Project analysis and investment decision making
- Payback method
- Accounting rate of return
- Net present value method
- Internal rate of return
- Profitability index
Problems and Issues associated with Accounting For Production Activities
Advanced Oil and Gas Accounting: International Petroleum Accounting (1)
*Indicative price
Original amount in GBP:
£ 6,000