Advanced Oil & Gas Accounting; International Petroleum Accounting (2)
Day 1 – ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS AND
ASSET IMPAIRMENT
General Contents, Concepts and Issues
- Accounting for asset retirement obligations
(1) Scope of SFAS No. 143
(2) Legally enforceable obligations
- Obligating event
- Asset recognition
- Initial measurement – fair value
- Traditional Approach
- Expected Cash Flow Approach
- Credit-adjusted Risk-free Rate
- Market Risk premiums
(3) Subsequent recognition and measurement
(4) Changes Due to the Passage of Time
- Interest Method of Allocation
- Funding and assurance provisions
- Gain or Loss Recognition upon Settlement
- Changes due to the revisions in estimates
- Reassessment
(5) Funding and assurance provision
(6) Conditional AROs
(7) Reporting and disclosures
Accounting for the impairment and disposal of long-lived assets
(1) Scope
(2) Asset groups
(3) Long-lived assets to be held and used
Indications of impairment
Testing for recoverability
Measuring impairment
(4) Long-lived assets to be disposed of
Long-lived assets to be disposed of other than by sale
Long-lived assets to be disposed of by sale
Disposal groups
(5) Impairment for full cost companies
Problems and Exercises Associated With Accounting For Asset Retirement Obligations and Asset Impairment
Day 2 – ACCOUNTING FOR REVENUE FROM OIL AND GAS SALES
Definitions
- API gravity
- BS & W
- Btu.
- Casing head gas
- Casing head gas.
- City gate
- Commingled gas.
- Dissolved gas
- Field facility
- Gas balancing agreement
- Gas settlement statement
- Gauging
- Heater-treater
- LACT unit
- Local distribution company (LDC).
- Mcf
- Natural gas
- Non-associated gas
- Tapping
- Thief
- Tank strapping
- Separator
- Measurements and sale of oil and natural gas
- Crude Oil measurement
- Run ticket calculation
- Crude oil sales
- Natural gas measurement
- Natural gas sales
- Standard division order
- Determination of revenue
- Utilizations
- Oil and gas revenue
- Recording Oil revenue
- Crude oil exchanges
- Recording gas revenue
Vented or flared gas
Non-processed natural gas
Natural gas processing
Stored natural gas
Take-or-pay provisions
- Timing of revenue recognition
Revenue from crude oil
Revenue from natural gas
Revenue reporting to interest owners
Additional topics
Gas imbalances
Producer gas imbalances
Pipeline gas imbalances
Allocation of oil and gas
Minimum royalty – an advance revenue to royalty owners
- Addressing Problems and Issues Associated with Accounting For Revenue From Oil and Gas Sales
Day 3 – BASIC OIL AND GAS TAX ACCOUNTING
- Non-drilling costs
- Acquisitions costs
- Drilling operations
- Equipment costs
- Production operations
- Losses from unproductive
- Percentage depletion
- Property
- Recapture of IDC and depletion
Lessor’s transactions
- Acquisition costs
- Revenue
Addressing Problems and Issues associated with Basic Oil and Gas Tax Accounting
Day 4 – JOINT INTEREST ACCOUNTING
The joint operating agreement
The accounting procedure
- General provisions: Accounting Procedure - definitions
- Affiliate
- Agreement
- Controllable Material
- Equalized Freight
- Excluded Amount
- Field Office
- First level Supervision
- Joint Account
- Joint Operations
- Joint property
- Laws
- Material
- Non-Operators
- Offshore Facilities
- Off-site
- On-site
- Operator
- Parties
- Participating Interest
- Participating party
- Personal expenses
- Railway receiving point
- Shore base facility
- Supply store
- Technical Services
- Statements and Billings
- Advances and payments by parties
- Adjustments
- Expenditure audits
- Approval by parties
- General matters
- Amendments
- Affiliates
- Direct charges
- Rentals and royalties
- Labour
- Material
- Transportation
- Services
- Equipment and facilities furnished by operator
- Affiliates
- Damages and losses to joint property
- Legal Expense
- Taxes and permits
- Insurance
- Communications
- Ecological, Environmental, and Safety
- Abandonment and reclamation
- Other expenditures
- v verAdvanced Oil & Gas Accounting; International Petroleum Accounting (2)head
- Overhead – drilling and producing operations
- Technical services
- Overhead – fixed rate basis
- Overhead – percentage basis
- Overhead – major constructions and catastrophe
- Amendment of overhead rates
- Material purchases, transfers, and dispositions
