Advanced US GAAP for the Upstream Oil & Gas Industry

Description

Oil and Gas is one of the most complex businesses that require massive capital investments. This complexity and the spending magnitude require the adoption of complex industry specific accounting rules, pronouncements, practices and disclosures.

The three days intensive USGAAP executive course covers both practical application of the most recent accounting pronouncements and related SEC disclosures as applicable to the upstream oil and gas industry. In addition all sessions will include applicable case studies relevant to the topic

This course takes you through accounting transactions involved in:

  • Exploration & Evaluation Phase
  • Development phase
  • Production phase
  • Conveyance
  • Oil and Gas and NGL sales
  • Partnership and International operations
  • Business combination in the upstream oil and gas business

In this course, you will learn:

  • How to understand and apply a series of major financial accounting principles and standards that are particularly associated with the upstream Oil and Gas
  • In-depth technical training on significant USGAAP accounting treatments applicable to the industry
  • The measurement and valuation of the upstream oil and gas properties
  • The internal control points to ensure the company is accounting for all of the transactions
  • Recent USGAAP and SEC developments, and interact with industry peers and discuss lessons learned

Course Benefits

  • Understand the different accounting methods for the Upstream oil and gas businesses
  • Learn the major differences between Full cost Vs Successful efforts method
  • Master the accounting transactions associated with the different stages in the upstream oil and gas industry starting from the drilling activities all the way to the production phase
  • Understand that specific accounting issues that are relevant to the upstream oil and gas industry, including depreciation, impairment, asset retirement obligations together with Oil and gas property conveyances
  • Explore revenue recognition issues facing the upstream business including imbalances
  • Understand the tax rules that are applicable to the industry
  • Master the disclosure requirements in addition to the SEC rules

Agenda

  • Introduction to Oil & Gas Industry
  • Accounting principles for oil and gas producing activities
  • Full cost accounting method
  • Successful efforts accounting method
  • Exploration costs
  • Unproved property acquisition, retention, and surrender
  • Costs incurred in drilling and equipping oil and gas properties
  • Development stage
  • Production stage
  • Depreciation, depletion and amortization
  • Impairment and disposal of Oil and Gas long lived assets
  • Asset retirement obligations
  • Accounting for Oil, Gas, NGL sales and gas imbalances
  • Accounting for partnership interest (joint arrangements and production sharing arrangements)
  • Oil and Gas reserves
  • Business combinations in the upstream oil and gas industry
  • Accounting for conveyance
  • Production payments and net profit interests
  • Farm-outs, carried interest, and unitization
  • Accounting for income taxes
  • Disclosure requirements

Dates

TBA

Instructor

Ahmed Badawy