Oil & Gas Accounting & Performance Measurement
Course Code: OG05
Course Objective
- Evaluate the Major Issues facing the Oil & Gas sector
- Prepare Financial Statements in accordance with International Financial Reporting Standards (IFRS)
- Evaluate the Financial and Operational Performance of international Oil & Gas companies
- Evaluate the importance and contribution of Oil & Gas to the National Governments and the Fiscal Budget
- Recommend Strategic Plans to Improve Performance
Target Audience
- 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
Course Outline
DAY 1: The Oil & Gas Sector – Identifying the Issues affecting Accounting & Performance Measurement
- Latest Events in the Oil & Gas sector- price volatility and supply & demand changes
- Managing the macro-economic factors, e.g. interest rates, exchange rates, oil prices
- Resources & Reserves
- Strategic Choices currently facing the sector
- Capital Investment Issues
- Performance across the Sector
DAY 2: Major Accounting Issues in the Oil & Gas Sector
- Revenue Recognition
- Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
- Break Even Oil, Cost Oil & Profit Oil
- Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method
- IFRS in relation to the Oil & Gas Sector
- IFRS 6: Exploration for and Evaluation of Mineral Assets
DAY 3: Accounting for Assets
- IAS 16: Property, Plant and Equipment
- Depletion, Depreciation & Amortisation (“DD&A”)
- IAS 36: Impairment of Assets
- IAS 37: Provisions, Contingent Liabilities and Contingent Assets
- IAS 38: Intangible Assets
- IAS 39 & IFRS 9 Financial Instruments: Recognition and Measurement
DAY 4: Measuring Financial Performance
- Cross Sectional & Time Series Analysis
- Financial Analysis: Income Statements & The Statement of Financial Position (Balance Sheet) Analysis
- Cashflow Analysis and its importance in the Oil & Gas sector
- Dupont Analysis – Evaluating and Improving Return on Equity (ROE)
- Evaluation of Share Price and Investment Performance
- Evaluating the Financial Performance of leading international companies in the sector
DAY 5: Measuring Operational & National/Government Efficiency and Performance
- Measuring Reserves – Life; Reserves per Well; Replacement Ratio etc
- Finding; Development & Production Capability & Efficiency
- Evaluating the Operational Performance of leading international companies in the sector
- Earned Value Added Analysis of Projects
- Evaluating the Fiscal Budgets of Oil & Gas producing countries
- National/Government Measures of Efficiency & Performance
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