Course description
Financial reporting in the oil and gas sector differs from that of other industries. Many companies in the oil and gas industry have to comply with various accounting policies, including the International Financial Reporting Standard.
Why should IFRS requirements be complied with in the Oil and Gas industry?
The IFRS applies to many public companies, oil and gas included, ensuring that the financial statements of these companies are consistent and transparent.
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The IFRS and Joint Venture Accounting (JVA) Training for the Oil and Gas Industry by Rcademy is best suited for professionals involved or interested in IFRS and Joint Venture Accounting. These professionals include:
- Energy industry professionals:working in the accounts department of the oil and gas industry
- Senior management executives:involved in preparing, approving, or reviewing IFRS financial statements
- Accountants:in the oil and gas company that prepares IFRS financial statements
- Investors:interested in learning how to read financial statements mandated by IFRS
- External and internal auditors:vested with the responsibility of ascertaining that the financial statements of oil and gas companies are transparent and consistent
- Government regulators:vested with the responsibility of ensuring that oil and gas companies comply with IFRS standard requirements and other accounting policies
- Treasurer, taxation & reporting managers, and
- Regulatory Compliance Officers:performing related functions in the oil and gas industry
Outcome / Qualification etc.
The IFRS and Joint Venture Accounting (JVA) Training for the Oil and Gas Industry by Rcademy aims to help trainees:
- Learn about applying IFRS requirements to create compliant financial statements for companies in the oil and gas industry
- Understand how IFRS relates to the preparation of
- income statements and revenue recognition
- Learn the required skills and expertise needed to apply
- the accounting standards, policies, and practices employed by companies in the oil and gas industry to comply with IFRS
- Understand the guidelines in accounting for joint ventures
- Comprehend the nature and financial implications of production-sharing contracts and other agreements between host governments and international companies
- Learn how to apply some significant financial joint venture accounting principles and standards that are applicable in upstream oil and gas activities
- Understand the standards and frameworks in IFRS applicable to the oil and gas industry
- Apply accounting procedures utilized in joint operating agreements and production-sharing contracts
Training Course Content
Module 1: Accounting in the Oil and Gas Industry
- Overview of the industry
- Characteristics of the Oil and gas industry
- Examination of oil and gas accounting
- The effect of currency, commodity prices, and fluctuating interest rate
Module 2: International Financial Reporting Standards (IFRS)
- Introduction
- Meaning of IFRS
- Principles of IFRS – Clarity – Comparability – Relevance – Reliability
- Purpose of IFRS
- Standard requirements of IFRS – Statement of financial position – Statement of changes in equity – Statement of comprehensive income – Statement of cash flows
Module 3: Overview of IFRS with the Oil & Gas Industry
- IFRS accounting policies in the oil and gas industry: IFRS 6, IFRS 13
- IFRS accounting policies for product sharing agreements, business combinations, and joint ventures: IFRS 3, IFRS 10, IFRS 11, IFRS 12
Module 4: Joint Venture
- Meaning, context, and Concept of Joint Venture
- Features of Joint Venture
- Correlation between operators and non-operator participants
- Objectives of Joint Venture
Module 5: Methods of Maintaining Joint Venture Accounts
- Maintaining a separate set of books
- Accounting without maintaining a separate set of books
Module 6: Maintaining a Separate Set of Books
- Meaning
- Result of maintaining a separate set of books – Joint bank account – Co-venturers account – Joint venture account
Module7: Accounting without Maintaining a Separate Set of Books
- Meaning
- Result of not maintaining a set of books
Module 8: Joint Venture Accounting (JVA)
- Meaning of JVA
- Joint Venture Accounting provisions
- Approach to Joint Venture Accounting: – Proportionate consolidation – Equity method
- Use of Joint Venture Accounting: – To ensure adherence to GAAP or IFRS accounting policies – For budgeting and mandating Authorisation for Expenditures (AFE) – To manage contracts bordering on owners’ shares, interests, and other agreements – To identify oil and gas market trends and insights
Module 9: Joint Venture Agreements in Oil and Gas Companies
- Why do oil and gas companies participate in JVA
- Types of JVA in the oil and gas industry: – Operational Joint Ventures – Risk-sharing JV – Capability sharing JV
Module 10: Joint Venture Accounting Policies for Oil and Gas Industry
- Financing of a joint venture – Billing statement – Cash flow reporting – Revenue recognition
- Assets exploration and estimation
- Expenditure reporting
- Cost allocation strategies
Module 11: IFRS and Joint Venture Accounting
- The relationship between IFRS-11 and JVA
- IFRS requirements regarding JVA
Module 10: Accounting and Corporate Governance in the Oil and Gas Industry
- Auditing and reporting investigations to investors in the oil and gas industry – External audits – Internal audits
- Ethical issues
- Corporate governance – Government regulation – Sarbanes Oxley
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Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...