Course dates
Key Elements of the course:
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How to understand and apply a series of major financial accounting principles and standards that are particularly relevant to oil and gas firms' activities
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How to Master the Accounting Fundamentals that improve company decision making regarding operations
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How to review and analyse oil and gas company financial reports
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How to calculate and interpret financial and operational metrics used to analyse the costs, profitability, efficiency, and value added by a firm's exploration and production activities
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The implications for the oil and gas industry accounting of the IASB's project on extractive industries
Course Introduction
The complexities of accounting for oil and gas companies require an ability to properly interpret and comply with the accounting requirements that are applicable to this industry's unique issues.
This three-day course focuses on these issues and provides an understanding of a series of major IFRS and accounting principles and standards that are particularly germane to the oil and gas business; shows how to apply these accounting rules; discusses financial reporting requirements for energy companies whose stock is traded in the U.S. such as British Petroleum, Total, and Chevron; shows where to find in corporate reports a wide variety of data and metrics relating to the performance of oil and gas firms; illustrates financial analysis of oil and gas firms; and presents and explains the metrics used to assess exploration and production operations.
The course is designed to guide you through the terminology and concepts relating to oil and gas accounting. You will also receive an update on the IASB's project for extractive industries and familiarity with SEC Oil & Gas Modernisation Act. In addition, the course project will assure that you leave the course with a mastery of Accounting for Oil & Gas Operations.
Course topics include:
- Fundamental concepts underlying the two basic sets of oil and gas accounting methods - Successful Efforts and Full Cost as well as other relevant accounting guidance including:
- Provisions & Contingencies for decommissioning
- Asset Impairments
- Accounting for Production Activities
- Revenue Accounting
- Accounting for Joint Interest Operations
- Accounting for Conveyances
- Complete Analysis of Required Disclosures
- IFRS 6: Exploration for and Evaluation of Mineral Resources
- Oil and gas accounting cases including: non-drilling exploration costs, drilling exploration costs, development costs, production, depreciation, depletion and amortisation, dismantlement,
restoration and abandonment ('asset retirement obligations') capitalisation of interest costs asset impairment
- Environmental accounting and disclosures
- Update on the IASB's project for extractive industries
- Corporate reports (including Annual Reports, Forms 10-K, 20-F, 10-Q, 6-K, 8-K, and more)
- Key information provided in each report and where to find it
- Report formats
Day 1
Overview of Accounting for Oil and Gas Operations under IFRS
Successful Efforts Accounting
- Computing the Depreciation, Depletion and Amortisation Entries
Full Cost Accounting
- Comprehensive Case Study of Successful Efforts and Full Cost Accounting
Accounting for Production Activities
Revenue Accounting
Each accounting topic is illustrated with numerous examples and computations
Starting the Course Project - Constructing Financial Statements and Preparing Financial Analysis for an Oil and Gas Company
Day 2
Continuation of Revenue Accounting
- Examples and short cases on Revenue Accounting
Decommissioning costs
Asset Impairment Accounting
- Examples and Cases on Accounting for Impairments
Accounting for Joint Interest Operations
- Case Studies on Accounting for Joint Interests
Financial Analysis Part I:
- Traditional financial analysis of oil and gas firms
- Liquidity measures
- Profitability measures
- Risk measures
- Hands-on financial statement analysis case study using data from oil and gas companies
Continuing the Course Project - Constructing Financial Statements and Preparing Financial Analysis for an Oil and Gas Company
- Preparing the Balance Sheet and Profit and Loss Statements
Day 3
Accounting for Conveyances
Accounting for Derivatives and Hedging Activities
- Examples and cases of the most common derivatives and hedging strategies used by Oil & Gas Company’s
Financial Statement Disclosures
- Overview of the disclosure Standards
Financial Analysis Part II:
Analysis of Exploration and Production Activities
- Disclosure requirements relating to oil and gas producing activities such as proved oil and gas reserve quantities, and costs incurred for property acquisition, exploration and development activities
- The standardised measure of discounted future net cash flows ('PV10')
- Where to find key data relating to firms' exploration and production activities
- Financial and operational metrics used to specifically assess an oil and gas company's exploration and production business
- Hands-on financial statement analysis case using data from oil and gas companies
- Calculate and interpret various industry metrics used to assess an oil and gas company's exploration and production business performance such as finding costs and reserve value -added-to-spending ratios.
Finishing the Course Project - Preparing the statement of cash flows and the necessary disclosures
Singapore Hotel, Singapore, Singapore
This programme takes place on a non-residential basis at a central Singapore hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
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Frank J. Beil
Frank J. Beil is a CPA and recognised expert in financial accounting. He has advised the Financial Accounting Standards Board (FASB) on the Codification Project on Revenue Recognition. He also conducts seminars on Accounting and Auditing Update, Fair Value Measurements, Accounting for Retirement Benefits, Accounting for Leases, Accounting for Revenue Recognition, Accounting for Derivative Instruments and Hedging Activities, and Accounting for Business Combinations.
He is a Managing Director of a firm which specialises in the Energy Industry by consulting on effectively managing operating and financial risk. He is also a Senior Lecturer in Accounting and Adjunct Professor of Management at a leading University. His previous experience includes holding positions as CFO for both businesses and non-profits as well as conducting auditing and accounting work for numerous publicly traded companies in the U.S.
He has published articles on accounting topics including Revenue Recognition: Fundamental Principles and Multiple Element Arrangements, and Revenue Recognition: Products and Services, and was named Price Waterhouse Coopers Outstanding Faculty of the Year.
Mr. Beil holds a Masters of Science in Accounting & Taxation from the University of North Dakota, and a Bachelor of Science in Business Administration from the University of Wisconsin.
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
Course dates