Accounting in Oil&Gas Industry

$
1800.00
2 days | 16 academic hours

Training objectives
Training program Day 1
Training program Day 2

Training objectives

  • Understand how business practices are reflected in financial statements
  • Grasp the specifics of forming the accounting policy for an oil and gas company
  • Identify the criteria for recognizing assets, liabilities, income, and expenses, taking into account the industry
  • Improve the quality of management decisions when developing strategic and tactical business development plans

Training program Day 1

Features of the Oil and Gas Industry
  • Stages of the investment cycle for mineral resource development and extraction
  • Classification of oil and gas resources
  • Accounting policy specifics of a vertically integrated oil and gas company
IAS 16 “Property, Plant and Equipment”
  • Definitions. Initial cost of property, plant, and equipment (PPE)
  • Borrowing costs
  • Borrowing costs eligible for capitalization
  • Conditions for capitalization
IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”
  • Estimation of decommissioning and environmental restoration reserves
  • Subsequent accounting models for property, plant, and equipment
  • Depreciation. DDA accounting using the successful efforts method
  • Subsequent costs (repairs of PPE): CAPEX vs OPEX
  • Derecognition of property, plant, and equipment
  • Decommissioning of oil fields

Training program Day 2

IAS 36 “Impairment of Assets”
  • Impairment of oil and gas assets
  • Indicators of impairment
  • Cash flow forecasting
  • Discount rate
  • Estimation and recognition of impairment losses
IFRS 16 “Leases”
  • Scope and key definitions
  • The new lease accounting model
  • Lease accounting in the lessee’s financial statements
IFRS 15 “Revenue from Contracts with Customers”
  • Definitions
  • 5-step model for identifying contracts, performance obligations, transaction price, and revenue recognition
  • Specifics of revenue recognition in the oil and gas industry
  • Accounting for costs during the extraction phase