Oil and Gas Accounting and Performance Measurement
Overview:
Introduction:
This program develops an essential understanding of Oil & Gas Exploration & Production (E&P) accounting, reporting, and performance measurement issues and practices. It develops your ability to prepare, use, and critically evaluate information on E&P activities, applying specialist industry knowledge and relevant analytical skills.
Program Objectives:
At the end of this program, participants will be able to:
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Develop an understanding of the accounting standards, policies, and practices used by companies in the Oil & Gas Exploration & Production industry.
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Appreciate the nature and financial implications of Production Sharing Contracts and other agreements between host governments and international companies.
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Examine issues and guidelines in accounting for Joint Ventures.
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Identify and know how to apply international and national accounting standards most relevant to the E&P industry.
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Improve the relevance and reliability of financial reports to better meet the needs of users.
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Review and use publicly available information for benchmarking the business performance of companies in the E&P industry.
Targeted Audience:
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Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants.
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Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets.
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Joint Venture Accountants and Auditors.
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External, Financial and Internal Auditors.
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Government Regulators and Auditors.
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Financial and Investment Analysts.
Program Outlines:
Unit 1:
Standards of Financial Reporting in the O&G Industry to Stakeholders:
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Investor reporting.
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New investors.
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Taxation and royalties.
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Stock market intermediaries.
Unit 2:
The Convergence of GAAP and IFRS:
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Effect on reporting.
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Migration paths.
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Effect on PSC reporting.
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Share pricing and O&G companies.
Unit 3:
Capitalization and Cash Flows in The Oil & Gas Industry - Sourcing Capital:
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Capitalizing E&P projects.
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Effects of IFRS.
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Capital maintenance.
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Sources of capital.
Unit 4:
Oil & Gas Value Chain and Accounting Issues:
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E&P Exploration & evaluation, borrowing costs, and development expenditures.
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P&S Reserves and resources.
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Product valuation issues, impairment of assets, disclosures, decommissioning.
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Royalties and income taxes.
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Emission trading schemes.
Unit 5:
Company Accounts, PSA’s and Joint Ventures Accounting for Multiple Efforts:
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Joint ventures – GAAP & IFRS.
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Business combinations.
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Currency issues.
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Accounting treatments.
Unit 6:
Analysis of Financial Statements:
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Analytical tools.
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Full cost.
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Successful efforts.
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Decommissioning obligations.
Unit 7:
Auditors and Reporting to Investors in The Oil and Gas Industry - External Audit Investigations and Reports:
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The auditor’s ‘Opinion'.
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True and Fair.
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Sarbanes Oxley.
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Internal audits.
Unit 8:
Ethical Issues:
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Corporate governance.
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Government regulation.
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Investor confidence and share prices.
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Creative accounting and investor protection.
Unit 9:
Investment Finance in The Oil and Gas Industry - Processes and Lead Times:
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Sources of external finance.
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Financial markets.
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Investment criteria.
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Roles of intermediaries in the financial markets.
Unit 10:
Shell and BP – Performance and Share Prices:
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Analysis of Shell Oil and BP Accounts.
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DuPont hierarchy of ratios.
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Theoretical conclusions and live feeds from London Stock Exchange.
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Influencing factors.