INTERNATIONAL FINANCIAL REPORTING & TREASURY RISK MANAGEMENT FOR OIL, GAS & PETROCHEMICAL INDUSTRY

This course provides an understanding of the various financial aspects in an organization from calculative aspect to other related practices in organization. The key element of the course is the focus on practical application of financial models and analysis, which are used to assess strategic and operational positions of the organization.

The course covers financial and economic conceptual dimensions of systematic business management and for understanding the nature of financial statements. In this course some case studies will be analyzed to provide a clear insight of decision-making process, various valuations methods, planning and interpreting financial information.

Course Objective

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

• Develop informed Strategic Decision-Making skills
• Carry-out systematic design of the organizational Risk Management Strategy
• Uphold Corporate Governance of the organization
• Improve stakeholders relationship
• Review the business performance of your company in the Oil, Gas & Petrochemical industry
• Reduce finance costs and improve returns through proper Management of Cash; Liquidity and Working Capital
• Examine issues and guidelines in accounting for Joint Ventures
• Acquire knowledge on accounting issues and potential problems faced from implementing IFRS
• Evaluate and apply International Financial Reporting Standards appropriate for the industry

COURSE OUTLINE

MODULE 1- INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE OIL & GAS SECTOR

• The Oil , Gas & Petrochemical Sector & Major Accounting Issues
• The Oil & Gas Sector & the Macro-economic Factors
• Effects of Commodity prices, currency fluctuations, and Interest rate , political developments and environmental risks
• Cost of Production of new oil /gas/petrochemical reserves: Exploration, Development and Acquisition
• Accounting Approaches
• The “Full Cost” (FC) Method
• Introducing IFRS in relation to the Oil, Gas & Petrochemical Sector, with particular reference to:
  • IFRS 1: First-time Adoption of International Financial Reporting Standards
  • IFRS 6: Exploration for and Evaluation of Mineral Assets
  • IFRS 10: Consolidated Financial Statements
  • IFRS 11: Joint Arrangements
  • IAS 16: Property, Plant and Equipment
  • IAS 36: Impairment of Assets
  • IAS 37: Provisions, Contingent Liabilities and Contingent Assets
  • IAS 38: Intangible Assets
  • IAS 39 and IFRS 9:  Financial Instruments: Recognition and Measurement

MODULE 2 – DEALING WITH THE ACCOUNTING ISSUES & PERFORMANCE

• Financial Statements Analysis
• Cash flow and Income Statements
• Balance Sheet
• Accounting Policies Evaluation
• DuPont Analysis
• Share Price and Investment Performance
• Upstream Accounting
  • Reserves and Resources
  • Exploration and Evaluation
  • Revenue Recognition & Assets impairment under both ‘successful efforts’ (SE) and ‘full cost’ (FC) accounting methods
  • Depletion, Depreciation and Amortisation
• Development, Production and Downstream Assets

MODULE 3 – JOINT VENTURES AND RELATED ACCOUNTING ISSUES

• Joint Ventures
• Production Sharing Agreements
• Joint Interest Billing
• Update on the IASB’s project for extractive industries
• Disclosure requirements for E&P Companies including Oil & Gas Modernization Act
• Hedging the Oil Price using Futures
• Case Scenarios

MODULE 4- CORPORATE GOVERNANCE

• Government Regulation
• Investor Protection
• Sarbanes Oxley Act
• Share Prices and Investor Confidence
• The Auditor’s ‘Opinion’
• Audit Investigations and Reports in the Oil, Gas and Petrochemical Industry
  • External Audit
  • Internal Audits
• True and Fair
• Ethical Issues

MODULE 5- TREASURY RISK MANAGEMENT

• Introduction of Treasury Management
• Role and Scope of Treasury Management
• Location and Operation of Treasury Department
• Liquidity and Cash Management
• Working Capital Management
• Finance Management
• Treasury Management Issues for Multi-nationals

MODULE 6 – DETAILED ANALYSIS OF CASH AND LIQUIDITY MANAGEMENT

• The Preparation and Role of Cash Forecasts
• Cash Calls and Short-Term Cash Finance Challenges
• Maximize Return through Investment of Cash Surpluses
• Determining the Optimum Level of Working Capital
• Cash Budgets Process and Control
• Group and Multi-national Cash Management

MODULE 7 – CAPITAL MANAGEMENT & FINANCING

• Long Term Finance
• Public & Private Equity vs. Buyer & Supplier Debt
• Consolidation, Growth, Diversification, M & A; Joint Ventures, etc
• Capital Structure: Minimize the Cost of Capital (WACC)
• Capital Asset Pricing Model (CAPM)
• NPV; IRR, Payback and Capital Investment Appraisal
• Internal & External Capital Rationing

MODULE 8 – RISK MANAGEMENT

• Determining Risks and Uncertainties
• Internal & External; Financial & Non-Financial Risk
• Risk Measurement (Volatility; Variance; Standard Deviation; Probability; Value at Risk)
• Ascertaining the Risk Management Strategy & Assessing Impact and Probability
• Tolerate; Terminate; Transfer and Treat
• Internal Auditing and Controls
• Credit Counterparty Risk Management

MODULE 9 – DETERMINING CURRENCY; INTEREST RATE & COMMODITY PRICE RISK MANAGEMENT METHODS

• Forward Contracts Agreements
• Forward Rate Agreements
• Swaps: Risk and Benefits of Currency & Interest Rate
• Options : Calls & Puts; European & American
• Foreign Currency Accounts Methods
• Market Correlation and Margin Payments
• Methods of Foreign Currency Borrowing

Who Should Attend?

Financial officers, controllers, accountants, Treasurers, corporate planning and business development professionals, Sales and marketing professionals

Delivery Method: This will include combine lectures, discussions, group exercises, case studies and illustrations. Participants will also understand the theoretical and practical knowledge of the topic.

Venue: Dubai

Fee: $9000

Duration: 2 weeks

Course Date: June 12th – 23rd 2023