Overview:
Oil and gas companies are significantly affected by special accounting rules and are always at the mercy of the business cycle. Industry accountants must also wade through unique tax issues. This seminar will:
- Describe the complex terminology used in oil and gas accounting
- Provide an understanding of revenue and expense issues
- Discuss tax aspects that affect the industry
Objective:
To provide accountants and auditors with specialized knowledge of accounting for oil and gas activities. You will learn the different types of oil and gas interests, which costs to capitalize and which to expense and the tax issues specific to the oil and gas industry.
Emphasis:
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Types of oil and gas interests
– Royalty interests
– Working interests -
Drilling activities
– Exploration and development
– Intangible Drilling Costs (IDC) -
Production and costs
– Volumes and prices
– Economic life
– Production costs
– Capital expenditures -
Oil and gas reserves
– Proved reserves
– Valuation of oil and gas assets
– Reserve report -
Income taxes
– Depletion—cost and percentage - Full cost and successful efforts methods
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Special issues and reporting requirements
– Impairment
– Asset Retirement Obligation -
Prices
– What determines price and how do prices affect the industry?
