Deloitte Prepares Upstream Cos for Seismic Shift in Accounting Rules

Upstream organizations are being offered advice in order to gear up for the biggest potential shake up of oil and gas accounting rules in the last 20 years.

The International Accounting Standards Board recently published its findings and proposals which challenge the fundamentals of accounting for upstream activities in the oil and gas industry under International Financial Reporting Standards (IFRS).

With everything from recognizing the fair value of reserves on the balance sheet to extensive new reserves disclosures under consideration, the proposals are far reaching in terms of their potential impact on IFRS reporters in the sector.

Professional services firm Deloitte is hosting a seminar designed to brief chief financial officers, financial controllers and audit committee members within the industry on the key issues and potential implications for their organizations.

The event will provide an overview of the proposals followed by a look at reserves definitions and disclosures, the pros and cons of fair value accounting for oil and gas reserves, what exploration assets to recognize and 'publish what you pay' disclosures.

This will be followed by a discussion with members of Deloitte's oil and gas team.

Graham Hollis, a Partner in the Audit practice of Deloitte in Aberdeen, said, "In an industry like oil and gas where many companies operate on a global stage and across multiple countries, it is vital that these businesses understand the fundamentals of the proposed changes to accounting policy to safeguard the future of their exploration, development, production and decommissioning activities.

"These are the first insights into the biggest shake up in the oil and gas accounting rules since the 1980s so the level of interest from companies is high."

A briefing will take place at Deloitte's office at 2 Queens Terrace, Aberdeen, on Tuesday September 29th from 5.30pm to 8pm.