Advanced Oil and Gas Accounting (1) (Jakarta)

HRODC Postgraduate Training Institute
A Jakarta, Indonesia (Indonesia)

£ 6.000 - (7.059 )
IVA Esente

Informazione importanti

  • Corso
  • Jakarta, indonesia (Indonesia)
  • Durata:
    6 Days
  • Quando:
    Da definire
Descrizione

By the conclusion of the specified learning and development activities, delegates will be able to: Demonstrate a heightened understanding of the differing levels of Financial Reporting Regulation and Standardization, as they apply to Oil and Gas Accounting. Demonstrate a heightened understanding of salient accounting concepts and governance. Demonstrate a heightened understanding of the differing levels of regulation and standardization applied to Oil and Gas accounting.
Suitable for: This course is designed for: Finance Directors and Managers. Financial Controller. Chief accountants. Treasury Officers. Asset Accountants. Joint Venture Accountants. Management Accountants. Internal and External Auditors. Government Regulators. Financial Analysts. Public Accountants

Informazione importanti

Requisiti: Degree or Work Experience

Sedi

Dove e quando

Inizio Luogo
Da definire
Jakarta, Indonesia
Jalan Lapangan, 10710, Indonesia, Indonesia
Visualizza mappa

Cosa impari in questo corso?

Financial Reporting
Governance
Accounting
IT
Oil and Gas
Gas
International
Accounting MBA
Financial
Property
Joint
Accountants
Financial Training
IT Development
Production

Programma

Course Contents, Concepts, Issues and Assessment

Accounting Concepts

  1. The money measurement concept
  2. The entity concept
  3. The going concern concept
  4. The dual aspect concept
  5. The accounting period concept
  6. Materiality (Proportionality) concept
  7. The conservatism concept
  8. Consistency concept
  9. The realization concept
  10. The matching concept
  11. The cost concept

Financial Governance and Standardisation Institutions

  1. Financial Accounting Standard Board (FASB)
  2. The Security and Exchange Commission (SEC).
  3. Accounting Standards Board (ASB)
  4. International Accounting Standards Committee (IASC)
  5. International Accounting Standards Committee Foundation (IASCF)
  6. International Financial Reporting Standards  (IFRS)
  7. Industry Specific Oil and Gas Accounting Standards
  8. Generally Acceptable Accounting Principles (GAAP) for Oil and Gas Producing Activities
  9. Oil Industry Accounting Committee (OIAC)

DRILLING DEVELOPMENT COSTS – SUCCESSFUL EFFORTS

General Contents, Concepts and Issues

Income tax accounting for drilling costs 

IDC vs. Equipment

Intangible Drilling  Costs (IDC)

(1)   Up to an including the installation of Christmas Tree 

  • Prior to Drilling 
    • G & G 
    • Preparation of Site 
  • During Drilling 
    • Drilling contractor’s charges 
    • Drilling mud, chemicals, cement, supplies 
    • Fuel 
    • Wages 
    • Well testing 
  • At Target depth and during completion
    • Well testing
    • Perforating and cementing
    • Swabbing, acidizing and fracturing
    • Labour related to the installation of subsurface equipment
    • Plugging and abandoning cost – for dry wells

(2)   After Christmas tree – following completion

  • Removal of Drilling Rig
  • Restoration of land and damages paid to surface owner

(3)   Wells other than Exploration and development Wells

  • Intangible costs for extending well (see lists 1 & 2, above)
  • Intangible costs incurred in drilling water supply and injection wells
  • Intangible costs incurred in drilling water and injection – where water well is being used to for exploration and development well or for injection.

Financial accounting for drilling and development costs 

Well classification

Exploratory well

Service well

Stratigraphic test well

Proved developed oil and gas reserves

Proved undeveloped reserves

Successful Efforts, exploration costs

Exploratory drilling costs

Development drilling costs

Stratigraphic test wells

AFE’s and drilling contracts

Special drilling operations and problems

(1)    Workovers

(2)    Damaged or lost equipment  and materials

(3)    Fishing and side tracking

(4)   Abandonment of portions of wells

Additional development costs

(1)   Development costs

  • Costs of gaining access and preparing well location for drilling
  • Costs of drill and equip development well, development-type Stratigraphic test well
  • Cost of acquiring , constructing and installing production facilities, e.g. lease 

Support equipment and facilities

Drilling and development seismic

Post-balance sheet events

Accounting for suspended well costs

Interest capitalization

Offshore and international operations

Problems and Issues associated with Successful Efforts Accounting for Drilling Development Costs

PROVED PROPERTY COST DISPOSITION – SUCCESSFUL EFFORTS

Costs of Property

Cost of lease and well equipment

Cost disposition through amortization

  • Reserves owned or entitled to
  • DD&A calculation
  • DD&A on a field-wide basis
  • DD&A when oil and gas reserve are produced jointly
  • Estimated future dismantlement, site restoration, and abandonment costs
  • Exclusion of costs or reserves
  • Depreciation of support  equipment and facilities
  • Cost disposition – nonworking interests
  • Revision of DD&A rates

Cost disposition through abandonment or retirement of proved property

Successful efforts impairment

Problems

FULL COST ACCOUNTING

Principles of Full Cost Oil and Gas Accounting

Disposition of capitalized costs

  • Inclusion of estimated future development expenditures
  • Inclusion of estimated future decommissioning costs
  • Exclusions of costs
  • Impairment of unproved properties costs
  • Abandonment of properties
  • Reclassification of properties
  • Support equipment and facilities
  • DDA&A under successful efforts versus full cost

Reserves in place – purchase

Interest capitalization

Limitation on capitalized costs – a ceiling

  • Asset retirement obligations
  • Deferred taxes
  • Income tax effects
  • Assessment of the ceiling test
  • SFAS No. 144 and Full Cost Ceiling Cost
  • Post-balance sheet events and the ceiling test

Problems and Issues associated with Full Cost Accounting

ACCOUNTING FOR PRODUCTION ACTIVITIES (1)

Accounting treatment

  • Cost of production versus inventory
  • Recognition of inventories
  • Lower-of-cost-or-market valuation

Accumulation and allocation of costs

Individual production costs

  • Secondary and Tertiary recovery
  • Gathering systems
  • Saltwater disposal systems
  • Tubular goods
  • Severance taxes

ACCOUNTING FOR PRODUCTION ACTIVITIES (2)

Production cost statements

Joint interest operations

Decision to complete a well

Project analysis and investment decision making

  • Payback method
  • Accounting rate of return
  • Net present value method
  • Internal rate of return
  • Profitability index

Problems and Issues associated with Accounting For Production Activities