International Financial Reporting Standards (IFRS) for the Oil and Gas and Petrochemical Sectors

Introduction

This 5-day IFRS for the Oil & Gas and Petrochemical Sectors (Upstream, Midstream & Downstream) training course develops an essential understanding of oil & gas accounting, reporting, and performance measurement issues and practices. This training course develops your ability to prepare, use, and critically evaluate information on Upstream, Midstream & Downstream Oil & Gas activities, applying specialist industry knowledge and relevant analytical skills.

This Training Course will Feature:

• Analysis and evaluation using practical case studies
• Facilitated group discussions on current issues, policies, procedures
• Real Life issues within delegates’ organizations and other oil and gas companies

Objectives

By the end of this Training Course, Delegates will Learn How to:

• Develop an understanding of the accounting standards, policies, and practices used by companies in the Oil & Gas industry
• Appreciate the nature and financial implications of Production Sharing Contracts and other agreements between host governments and international companies
• Examine issues and guidelines in accounting for Joint Ventures
• Identify and know how to apply international and national accounting standards most relevant to the industry
• Improve the relevance and reliability of financial reports to better meet the needs of users
• Review and use publicly available information for benchmarking the business performance of companies in the industry

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This International Financial Reporting Standards (IFRS) for the Oil & Gas and Petrochemical Sectors training course is designed specifically for those who have a basic understanding of accounting, and want to learn more about accounting and financial reporting policies and practices in the Oil & Gas and Petrochemical industry (upstream, midstream & downstream).

In particular, this training course will be suitable for:

• Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
• Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
• Joint Venture Accountants and Auditors
• External, Financial and Internal Auditors
• Government Regulators and Auditors
• Financial and Investment Analysts

Course Outline

DAY 1: Major Accounting Issues facing the Oil & Gas and Petrochemical Industry (Upstream, Midstream & Downstream) and the Role of IFRS

• The Latest Accounting Issues facing the Oil & Gas and Petrochemical Industry (upstream, midstream & downstream)

• The Impact of Commodity Prices, Currency & Interest Rate Fluctuations, and Political and Environmental Developments

• The Impact on Strategic Development and Growth within the Industry

• Establishing the Case for IFRS

• An Overview of IFRS in relation to the Oil & Gas Industry

• The Annual Reports & Financial Statements of Leading International Petroleum Companies

DAY 2: Accounting for Assets in the Oil & Gas and Petrochemical Industry (Upstream, Midstream & Downstream)

• IAS 16: Property, Plant and Equipment and Depletion, Depreciation & Amortisation (“DD&A”)

• IAS 36: Impairment of Assets

• IFRS 6: Exploration for and Evaluation of Mineral Assets and the Accounting Approaches

• IFRS 13: Fair Value Measurement

• IAS 2 Inventories

• Reserve Reporting

DAY 3: Accounting for Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s) 

• IFRS 3: Business Combinations

• IFRS 10: Consolidated Financial Statements

• IAS 38: Intangible Assets

• IFRS 12: Disclosure of Interests on Other Entities

• IFRS 11: Joint Arrangements

• Break-Even Oil, Cost Oil & Profit Oil

DAY 4: Accounting for Cash Flow & Financial Instruments in the Oil & Gas and Petrochemical Industry (upstream, midstream & downstream)

• IAS 7 Statement of Cash Flows

• The Use of Derivatives in the Oil & Gas & Petrochemical Sector to Manage the Commodity, Currency, and Interest-rate Risks, etc.

• Treasury Management Issues for Multi-nationals

• IFRS 7 Financial Instruments: Disclosures

• IFRS 9 Financial Instruments

• Evaluating the Cash Flow & Use of Financial Instruments by Leading International Oil & Gas and Petrochemical Companies

DAY 5: Creative Accounting and Corporate Governance

• Creative Accounting

• Enron and Investor Protection

• Corporate Governance

• The Role of the Board & Audit Committee

• External Auditing - reporting to investors

• Internal Auditing - Defining and Developing the Internal Audit Process