UPSTREAM PETROLEUM ACCOUNTING

Introduction:

This course is aimed to develop the required competencies needed to prepare and evaluate Upstream Petroleum Accounts and to improve the internal audit function of the organization. It provides an introduction on methods for evaluating Financial, Organizational and Social Effectiveness, and applicable International Financial Reporting Standards (IFRS) for accounts planning. Participants will thus be able to prepare IFRS-compliant financial statements and take strategic decisions to enhance their organization’s financial performance.

Furthermore, the growth, monitoring and continuous improvement of a fully integrated internal audit system will assist with ongoing financial performance, stability and progress.

Course Objectives:

At the end of this course, participants will be able to:

• Demonstrate an in-depth understanding of Upstream Petroleum Companies’ accounting and auditing principles, strategies and practices
• Improve the importance and quality of financial statements to better satisfy user needs
• Analyze and use information which is publicly accessible to compare business results
• Recognize the importance and purpose of the department of Internal Audit in the Organization
• Recognize the risk of auditing, and prepare, track and report an audit assignment effectively

Course Outlines:

Day 1: Major Accounting & Auditing Issues in the Upstream Petroleum Sector

• The Latest Accounting & Auditing Issues Facing the Sector
• The Impact of Commodity Prices, Currency & Interest Rate Fluctuations and Political and Environmental Developments
• The Impact of Financial and Accounting Issues on Strategic Development and Growth within the Sector
• The Annual Reports & Financial Statements of Leading International Petroleum Companies
• An Overview of IFRS in Relation to Upstream Oil & Gas Accounting
• The Role of Auditing

Day 2: Accounting for Revenue & Costs in the Upstream Petroleum Sector

• Revenue Recognition & IFRS 15: Revenue from Contracts with Customers
• Costs in Acquisition, Exploration, Development and Production
• IFRS 6: Exploration for and Evaluation of Mineral Assets
• Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method
• Break Even Oil, Cost Oil & Profit Oil
• Evaluating Profitability of Leading International Oil & Gas Companies

Day 3: Accounting for Assets in the Upstream Petroleum Sector

• Reserves & Resources
• IAS 16: Property, Plant and Equipment
• Depletion, Depreciation &Amortization (“DD&A”)
• IAS 36: Impairment of Assets
• IAS 37-39: Provisions, Contingent Liabilities and Contingent Assets; Intangible Assets and Financial Instruments
• Evaluating the Assets & Reserves of Leading International Petroleum Companies

Day 4: Creative Accounting, Corporate Governance & Auditing

• Creative Accounting
• Corporate Governance
• Published Financial Statements
• The Role of the Board & Audit Committee
• External Auditing – Reporting to investors in the Oil & Gas industry
• Internal Auditing – Defining and Developing the Internal Audit Process

Day 5: The Internal Audit Function 

• Establishing the Roles & Staff within the Internal Audit Department
• The Various Types of Audits
• Planning & Commencing Internal Audit Examinations
• Controls & Substantive Tests
• Communicating Audit Findings
• The Audit Exit Conference Meeting & Post-Audit Reviews

Who Should Attend?

• Financial Analysts
• Financial Controllers
• Management Accountants
• Auditors
• Treasury Officers

Delivery Method: Lectures, discussions, syndicate work, case studies, role – play and group exercises. Audio – Visual aids will be used to reinforce these training and learning methods.

Venue: London

Fee: $5,000.00

Duration: 1 Week

Date: May 29^th – 2nd Jun 2023