TRAINING COURSES

Oil & Gas Accounting & Performance Measurement

Start Date: 17 Mar 2019
End Date: 21 Mar 2019
Duration: 5
Fees:
Country: Kuala Lumpur / Malaysia
Category: Finance, Accounting & Investment
Details:

Introduction

This five-day programme 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.

         The programme is designed specifically for those who have a basic understanding of accounting but who need to understand more about accounting and financial reporting policies and practices in the upstream oil and gas industry.

         Topics covered include the successful efforts and full cost methods of accounting, the classification of assets as tangible or intangible, the unit of production method for depreciation of capitalised costs, the testing for impairment of oil and gas assets, and accounting for removal and restoration of oil and gas facilities.

         The main requirements of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) relevant to the Oil & Gas Exploration & Production industry are examined for each major phase in the field life cycle.

         Learning throughout the course is achieved through illustrated presentations, group discussions, worked examples, exercises and solutions, and extracts from published financial statements of international companies.

         Participants in this programme gain a broader and deeper appreciation of the role of the E&P Finance Department and the context in which it operates, encouraging a more confident and proactive approach to their work, developing awareness of issues, and preparing them for increased responsibility.

 

Objectives

By the end of the programme, delegates will learn how to:

         Develop understanding of the accounting standards, policies and practices used by companies in the Oil & Gas Exploration & Production industry

         Appreciate the nature and financial implications of Production Sharing Contracts and other agreements between host governments and international companies

         Examine issues and guidelines in accounting for Joint Ventures

         Identify and know how to apply international and national accounting standards most relevant to the E&P industry

         Improve relevance and reliability of financial reports to better meet the needs of users

         Review and use publicly available information for benchmarking the business performance of companies in the E&P industry

 

Training Methodology

Each topic on this course is introduced with an illustrated presentation on the activities to be accounted for, the methods used, and the issues arising in the financial reporting of those activities. Learning on each topic is developed by a worked example, and participants then complete an exercise, individually or in groups as appropriate, to ensure that they are able to apply what they have learned. On completion of each exercise, a full solution is issued and discussed, with an opportunity for questions and answers. Having mastered the theory and practice of each issue, learning is further reinforced by examination of relevant extracts from the annual reports of international oil and gas companies. At the end of each day, participants have an opportunity for a one-to-one session with the course leader to ask further questions and to go over any material that they have not yet fully understood.

 

Organisational Impact

 

         More effective Finance support for front-line departments

         Greater relevance and reliability of financial and management information

         More strategic thinking and focus on performance

         More effective use of financial statements of the company, its co-venturers and its competitors

         Ability of Finance managers and staff to work with less supervision

         Preparation of Finance staff for increased responsibility

 

Personal Impact

 

         Better understanding of the context and importance of the work you do

         Greater awareness of industry practices, problems and solutions

         Increased understanding and assurance to complete tasks successfully

         Increased self-confidence and motivation at work

         Greater job satisfaction in providing quality support to management

         Greater ability to supervise, develop and motivate colleagues

Who Should Attend?

         Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants

         Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.

         Joint Venture Accountants and Auditors

         External, Financial and Internal Auditors

         Government Regulators and Auditors

         Financial and Investment Analysts

 

 SEMINAR OUTLINE 

 

DAY 1

The development and purpose of company accounts

Standards of financial reporting in the O&G industry to stakeholders

 

         Investor reporting

         New investors

         Taxation and royalties

         Stock market intermediaries

Convergence of GAAP and IFRS

         Effect on reporting

         Migration paths

         Effect on PSC reporting

         Share pricing and O&G companies

 

DAY 2

Capitalisation and cash flows in the Oil & Gas Industry

 

Sourcing capital

         Capitalising E&P projects

         Effects of IFRS

         Capital maintenance

         Sources of capital

Oil & Gas Value Chain and Accounting Issues

         E&P Exploration & evaluation, borrowing costs and development expenditures

         P&S Reserves and resources

         Product valuation issues, impairment of assets, disclosures, decommissioning

         Royalties and income taxes

         Emission trading schemes

 

DAY 3

Company accounts, PSAs and Joint Ventures

 

Accounting for multiple efforts

         Joint ventures GAAP & IFRS

         Business combinations

         Currency issues

         Accounting treatments

Analysis of financial statements

         Analytical tools

         Full cost

         Successful efforts

         Decommissioning obligations

 

DAY 4

Auditors and reporting to investors in the oil and gas industry

 

External audit investigations and reports

         The auditors Opinion'

         True and Fair

         Sarbanes Oxley

         Internal audits

Ethical issues

         Corporate governance

         Government regulation

         Investor confidence and share prices

         Creative accounting and investor protection

 

DAY 5

Investment finance in the oil and gas industry

 

Processes and lead times

         Sources of external finance

         Financial markets

         Investment criteria

         Roles of intermediaries in the financial markets

Shell and BP Performance and Share Prices

         Analysis of Shell Oil and BP Accounts

         DuPont hierarchy of ratios

         Theoretical conclusions and live feeds from London Stock Exchange

         Influencing factors

 
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