Oil and Gas Accounting and Joint Venture Accounting

Course overview

Course outline

1. 1Day 1: Oil and Gas Business and Financial Reporting

   • Overview of the oil and gas value chain
   • Financial reporting framework and IFRS relevance
   • Key performance measures in the industry
   • Reserves and resources: concepts for accountants
   • Chart of accounts and cost centres
   • Exercise: Mapping operations to accounting events
2. 2Day 2: Exploration, Development and Production Costs

   • Accounting for exploration and evaluation
   • Successful efforts and full cost concepts
   • Capitalising development costs
   • Depletion using the units-of-production method
   • Impairment indicators and testing
   • Worked example: Depletion and impairment calculation
3. 3Day 3: Joint Venture Accounting

   • Joint arrangements under IFRS 11
   • Joint operating agreements and accounting procedures
   • Cash calls and advances
   • Cost allocation and overhead recovery
   • Partner billing and reconciliation
   • Case study: Preparing a joint venture billing statement
4. 4Day 4: Revenue, Fiscal Regimes and Provisions

   • Revenue recognition and lifting imbalances
   • Production sharing contracts and cost oil
   • Royalties and petroleum taxes
   • Decommissioning provisions
   • Environmental and other obligations
   • Worked example: Production sharing calculation
5. 5Day 5: Reporting, Controls and Audit

   • Financial statement presentation and disclosures
   • Internal controls in oil and gas accounting
   • Partner and external audits
   • Management reporting and cost analysis
   • Common errors and how to avoid them
   • Capstone: Accounting review of a case company