Global oil prices have fallen sharply over a long term period, thereby leading to significant shortfalls in revenues of many of the energy-exporting nations while petroleum companies grapple with the financial accounting and profitability implications of the shock. Notwithstanding, the oil industry remains one of the most strategic of all industries all over the world. Oil is still both a major source of revenue and a visible weapon in international politics. It is therefore very pertinent to adopt a very systemic and sound method of appropriating the proceeds of such an invaluable means of economic and political relevance.
Accounting for oil and gas prospecting has developed over the years but there is still no set of globally or generally applied standards of accounting for oil and gas activities. Some oil companies in Nigeria use the successful method while others prefer the full cost method of accounting. However, there is yet another accounting method, which is based on proved oil and gas reserves, this method of Reserve Recognition Accounting is hardly used in the country.
|Face-to-Face||Starts April 14, 2021||3 days|
|Online||Starts March 10, 2021||3 weeks|
It provides both the agile knowledge and skills necessary for scrum masters (coaches), product owners (customers), and team members to succeed.
Oil and Gas accounting can therefore be quite complex with different entities faced with choosing between Full Cost and Successful Efforts while special rules are applied to depletion, depreciation and amortization. The fact that some of the companies operating in Nigeria are from different countries may also mean the use of varying accounting principles and procedures for recording and reporting in accordance with those practiced in the respective companies’ home country. This practice makes comparability of financial statements of oil companies difficult.
Particularly in Nigeria, the adoption of the International Financial Reporting Standard (IFRS) should have a big impact on all upstream oil and gas companies. This course provides participants with an in-depth understanding of the different accounting principles and procedures prevalent in the petroleum industry. It highlights the importance of various contracts and fiscal policies on accounting procedures. It emphasizes in particular, the fiscal and accounting framework of the petroleum industry in Nigeria compared to what obtains in some other countries.
On completion of this course, students are expected to be able to: