IFRS Accounting for the Oil and Gas Sector

The oil and gas industry has specific accounting and disclosure requirements for exploration, development and production activities. IFRS 6 Exploration for and Evaluation of Mineral Resources provides some guidance for the entities in the extractive industry.

This 3-day training covers the impact of diverse accounting practices for upstream business, accounting issues in development and production stage, and the disclosures in relation to oil & gas companies reserves. In addition, this training covers the principles in relation to leases, joint arrangements, revenue recognition and hedging.

This training covers the specific standards that are key to the preparation and analysis of oil and gas entity’s financial statements.

Objectives:

To enable participants to obtain an in-depth understanding of the IFRS financial statements of oil and gas companies:

• Learn the terminology and appreciate the financial reporting considerations in IFRS financial statements of oil and gas companies
• Interpret and apply relevant accounting policies and standards (IFRS 6 Exploration for and Evaluation of Mineral Resources, IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets, IAS 36 Impairment of Assets), including analysis of issues in exploration, drilling, development and production stages
• Apply the key accounting principles in IFRS 15 Revenue, IFRS 16 Leases and those in relation to hedge accounting in IFRS 9 Financial Instruments
• Review the accounting for joint arrangements, production sharing contracts and conveyances
• Examine the disclosures in financial statements including those relating to reserve data and supplemental disclosures
• Evaluate and interpret IFRS financial statements of oil and gas companies

Target Audience:

The course is useful for preparers and users of IFRS financial statements of oil and gas companies, including those seeking a comprehensive understanding of the key IFRS accounting issues in the industry. This includes staff in finance, treasury, operations, internal and external auditors, analysts, senior management and executives.

A basic understanding of financial statements under any GAAP is a pre-requisite.

Training Method:

The training course will be delivered in Kuala Lumpur, Malaysia. The training course is presented in an interactive workshop format that allows discussion. The course will be delivered through analysis of case studies and running example problems.