IFRS for Oil and Gas Companies

The programme

Programme overview

International Financial Reporting Standards (IFRS) are crucial for public companies to maintain transparency and consistency in financial reporting across different regulatory and capital markets, especially for the oil and gas sector with its international scope. This course delves into the specifics of IFRS as it pertains to oil and gas operations, providing the necessary insights to manage and report financial activities effectively.

Who should attend

Who is this programme for?

• Financial Controllers and Corporate Accountants
• Finance Staff Across Various Departments
• Treasury Officers and Management Accountants
• Auditors, Both Internal and External
• Employees of Government Regulatory Authorities
• Investment and Financial Experts
• Professionals Involved in Upstream Oil & Gas Activities

Learning outcomes

What you will learn

• Impart knowledge of international accounting standards applicable to the oil and gas industry
• Offer insights into the financial aspects of oil and gas production contracts, including leases, concessions, and production sharing agreements
• Apply IFRS principles to exploration and evaluation activities, and incorporate carbon pricing, emissions costs, and energy transition considerations into asset accounting
• Ensure accurate valuation of tangible assets and adherence to IFRS asset impairment rules, including how AI now supports data governance and audit readiness in these judgement-heavy areas
• Explore hedge accounting, currency risk, and derivatives in relation to oil and gas, including joint venture risk
• Apply fair value measurement principles and reserve reporting techniques
• Prepare consolidated financial statements and incorporate sustainability-related disclosure (IFRS S1/S2)
• Understand corporate governance, audit committee roles, and effective investor reporting for oil and gas entities
• Solve IFRS-related problems and apply IFRS at the initial stages of adoption

Personal Benefits

• Gain expertise in IFRS to advance their careers
• Enhance their roles within companies through increased IFRS understanding
• Make informed financial decisions and reduce risks
• Acquire improved decision-making skills, adding value to their organisations
• Obtain a comprehensive understanding of major issues and resolutions in their roles

Explore the programme

Detailed programme outline

3-Day Essentials — Training Outline

• Overview of oil/gas contracts: leases, concessions, and production sharing agreements (PSAs)
• Exploration and evaluation of resources under IFRS 6
• Treatment of property, plant, equipment, and asset impairment
• Recognition and measurement criteria for oil and gas assets
• Accounting for decommissioning liabilities
• Incorporating carbon pricing and energy transition considerations into asset decisions
• Revenue recognition practices in upstream companies
• Over-lift balance management
• Cost recovery methods and tax implications in PSAs
• IFRS impairment testing and calculating recoverable amounts
• Currency risk, derivatives, and hedging strategies
• Accounting for joint ventures and associated risks
• Fair value measurement principles and reserve reporting
• Preparing IFRS-compliant financial statements
• Consolidated financial statement preparation
• Corporate governance and the role of audit committees
• Effective reporting to investors
• Deciding whether the 5-Day Comprehensive programme is the right next step

5-Day Comprehensive — Training Outline

• Overview of IFRS and its significance in the oil and gas industry
• Comparison of IFRS with alternative financial reporting frameworks
• Key IFRS standards for oil and gas operations
• Financial statement structure and presentation
• Overview of various oil/gas contracts
• Accounting for leases, concessions, and PSAs
• Treatment of plant, property, equipment, and asset impairment
• Accounting for exploration and evaluation expenditures
• Capitalisation criteria in accordance with IFRS 6
• Depreciation, amortisation, and impairment of exploration assets
• The IASB's Extractive Activities project: concluded September 2023, with the decision to retain IFRS 6 unchanged
• How AI now supports data governance across the exploration and evaluation reporting chain
• Accounting for decommissioning liabilities and asset retirement obligations
• Valuation and recognition of reserves
• Incorporating carbon pricing mechanisms and Carbon Capture and Storage (CCS) costs into asset decisions
• Detailed analysis of financial statements
• Classification and treatment of oil and gas assets
• Control and de-recognition of assets
• Reserve estimation and cost recovery processes
• Handling interests related to decommissioning
• Management of restoration and rehabilitation funds
• Income tax considerations and tax holiday impacts
• Deferred tax accounting for assets
• IFRS impairment testing and indicators for oil and gas assets
• Calculating recoverable amounts, including how AI-supported anomaly detection now assists impairment indicator identification
• Accounting and reporting for production sharing agreements (PSAs)
• Lease project evaluations
• Currency risks and functional currency management
• Utilisation of derivatives and hedging strategies
• Accounting for asset exchanges
• Impact of commodity prices and currency variations
• Current accounting issues in oil & gas
• Comprehensive asset accounting across the oil & gas petrochemical industry
• Depreciation, depletion, and amortisation practices
• Fair value measurement principles and reserve reporting techniques
• Accounting for interests in other entities
• Joint venture arrangements and profit/cost oil calculations
• Strategic developments in the industry
• Statements of cash flows under IFRS
• Incorporating sustainability-related disclosure (IFRS S1/S2)
• Creative accounting risks and corporate governance
• Role and responsibilities of internal boards and audit committees

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.