The complexity of the oil and gas industries frequently results in projects being undertaken by joint ventures, alliances and other strategic groupings. Forming a successful alliance, whatever its format, is a complex process requiring a high degree of experience and expertise. This course explains the nature and form of joint ventures and summarises the requirements of IAS 31 and IFRS11 Interests in Joint Ventures and the relevant requirements under IFRS and US GAAP.
This 5-day training course also covers a number of issues regarding the relationships between operators and non-operators in joint ventures, the financing of joint venture operations and the reporting of joint costs. Our expert instructors also describe internal accounting for the costs and revenues from joint operations from the individual participant’s point-of-view.
By attending this training course, you will gain the following
- Understand and know how to apply a series of major financial accounting principles and standards that are particularly relevant to upstream oil and gas activities
- Master essential knowledge of standards and frameworks in the IFRS relevant to oil & gas joint venture activites
- Demonstrate proficiency and understanding of the key ideas and concepts of Joint Venture accounting.
- Understand differences between IFRS and US GAAP in Joint Venture accounting.
- Understand the different types of Joint Venture agreements found worldwide and the accounting implications of each.
- Understand the different methods of Joint Venture asset accounting; full cost and successful efforts including acquisitions, DD&A, transfers, impairments, and asset retirement obligations.
- Understand accounting issues related specifically to joint interests.
- Understand revenue allocations under different types of agreements, as well as issues of overlift/underlift.
- Understand accounting for interest conveyances including carried interests, unitizations and equalizations.
- Read and interpret supplemental disclosures of upstream companies.
Key Topics Covered
- Characteristic Features of the Oil and Gas Industry
- Overview of the Accounting policies for oil upstream Oil and Gas business
- Scale of operations
- Nature and timing of cash flows
- Risks analysis and management
- Determination of success
- Understanding a joint-venture (JV) agreement and Reasons Why Oil and Gas Companies Participate in Them
- Typical Provisions of Joint Venture Agreements
- What a JV agreement states about accounting?
- Understanding JV billings - how to process a JV billing statement
- IAS 31 and IFRS11 Interests in Joint Ventures
- The IFRS ad US GAAP Requirements Regarding Joint Ventures
- Accounting for Conveyances Between Joint Venturers
- Accounting for farm in and farm out
- Relationship Between Operator and Non-operator Participants
- The Financing of Joint Ventures – Billing Statements and Cash Flow Reporting
- Reporting of Expenditures
- Budgets and Approvals
- Cost Allocation Methods and Issues
- Revenue Recognition Relating to Over and Under-lifting
- Unitisations and Adjustment of Interests
- Accounting issues and payments related to joint venture operations
- Accounting for Production Sharing Agreements
- Overview of the IASB Joint Arrangements Exposure Draft
This Training Course is Specially Designed For
This program will be of most benefit to energy industry professionals who are currently working in the accounts department of the oil and gas industry or require additional knowledge in Joint Venture Accounting in the Oil and Gas industry.
- Accounting Executive/Managers
- Financial Reporting Managers
- Financial Executives / Managers / Controllers/Directors
- Budgeting Officers/Executives/Managers
- Cost Controllers, Executive & Managers
- Auditors/Auditing Managers
- Taxation & Reporting Executives/Managers
- JV/Production Sharing Executives/Managers/Advisors
- Business/Investment Analysts & Managers
- Asset Officers/Mangers
- Regulatory Compliance Officers
- Business Development Executives & Managers
- Commercial Analysts, Executives & Managers