Course Dates, Venues and Fees
|FI120||09 - 13 Apr 2018||London - UK||$5,500|
|FI120||23 - 27 Jul 2018||New York - USA||$6,950|
|FI120||10 - 14 Sep 2018||London - UK||$5,500|
Why Choose this Training Course?
This five-day International Financial Reporting Standards (IFRS) for the Oil and Gas Industry training course develops an essential understanding of Oil & Gas Exploration & Production (E&P) accounting, reporting and performance measurement issues and practices.
This PetroKnowledge training course develops your ability to prepare, use and critically evaluate information on E&P activities, applying specialist industry knowledge and relevant analytical skills.
The IFRS for the Oil and Gas Industry training course will feature:
- Analysis and evaluation using practical case studies
- Facilitated group discussions on current issues, policies, procedures
- Real Life issues within delegates’ organisations and other oil and gas companies
Training Objectives click here
What are the Goals?
By the end of the IFRS for the Oil and Gas Industry training course, delegates will learn how to:
- Develop an understanding of the accounting standards, policies and practices used by companies in the Oil & Gas Exploration & Production 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 E&P industry
- Improve 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 E&P industry
Target Audience click here
Who is this Training Course for?
This PetroKnowledge training course is designed specifically for those have a basic understanding of accounting, and want to learn more about accounting and financial reporting policies and practices in the upstream oil and gas industry. In particular the 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
Training Methods click here
How will this Training Course be Presented?
Each topic on the IFRS for the Oil and Gas Industry training course is introduced with an illustrated presentation on the activities to be accounted for, the methods used, and the issues arising in the financial reporting of those activities. Learning on each topic is developed by a worked example, and participants then complete an exercise, individually or in groups as appropriate, to ensure that they are able to apply what they have learned.
On completion of each exercise, a full solution is issued and discussed, with an opportunity for questions and answers. Having mastered the theory and practice of each issue, learning is further reinforced by examination of relevant extracts from the annual reports of international oil and gas companies. At the end of each day, participants have an opportunity for a one-to-one session with the course leader to ask further questions and to go over any material that they have not yet fully understood.
Daily Agenda click here
Day One: The Oil and Gas Sector & Major Accounting Issues
Competency Description: As an auditor, a finance or management professional, you will need to obtain a good overview of IFRS standards and how switching to these will impact on the financial statements and the wider implications for your company and clients.
- Organizational development
- Understanding key principles of IFRS
- Creating vision and initiatives
- Managing change
Topics to be covered
- The Oil & Gas Sector & the Macro-economic Factors
- Commodity prices, currency fluctuations, interest rate risk and political developments and environmental risk.
- Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
- Accounting Approaches
- The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method
- Introduction/Overview of IFRS in relation to the Oil & Gas Sector, with particular reference to:
- IFRS 1: First-time Adoption of International Financial Reporting Standards
- IFRS 6: Exploration for and Evaluation of Mineral Assets
- IFRS 10: Consolidated Financial Statements
- IFRS 11: Joint Arrangements
- IAS 16: Property, Plant and Equipment
- IAS 36: Impairment of Assets
- IAS 37: Provisions, Contingent Liabilities and Contingent Assets
- IAS 38: Intangible Assets
- IAS 39 Financial Instruments: Recognition and Measurement – Superseded by IFRS 9 – was to be effective 2013 but now 2018
Day Two: Evaluating the Performance and Identifying the Accounting Issues
Competency Description: As an auditor, a finance or management professional, you need to develop excellent analytical skills to fully understand and deal with difficult accounting issues.
- Analyzing situations and data
- Lateral and Vertical problem solving
- Decision making process
- Delegation skills
Topics to be covered
- Analysis of financial statements
- Income Statements
- Statement of Financial Position (Balance Sheet)
- Cash flow Statements
- Identification & Evaluation of their Accounting Policies
- DuPont Analysis – Evaluating and Improving Return on Equity (ROE)
- Evaluation of their Share Price and Investment Performance
- Case Study: BP, Chevron, Shell and SABIC
Day Three: Accounting for Upstream Activities with reference to IFRS
Competency Description: The application of IFRS to upstream and downstream accounting issues involves applications of fundamental principles and best industry practice. An analytical and questioning approach to understanding technical issues within contracts and discussions with technical experts such as engineers will greatly aid in the understanding of accounting and auditing issues.
- Uses a variety of questioning techniques to clarify
- Uses listening skills effectively
- Able to influence and persuade through effective communication
- Uses communication to control and be assertive as needed
- Good understanding of the technical issues, accounting choices and best practice
Topics to be covered
- Reserves and resources
- Exploration and evaluation
- Revenue recognition
- Depletion, Depreciation & Amortisation (“DD&A”)
- Impairment of development, production and downstream assets
- Examples: BP, Chevron & Shell
Day Four: Joint Arrangements, Financial Instruments and Derivatives
Competency Description: Business combinations such as Joint ventures are common in the industry to spread risk and assist in obtaining the large amount of capital necessary. Derivatives are commonly used to hedge risks such as movements in the oil price, interest rates and exchange rates. The accounting standards in these areas are complex and a good technical understanding of the issues is necessary.
- Understand the importance of derivatives in hedging risk
- Be aware of how oil , gas and airline companies use these in practice and the accounting implications
- Obtain a good understanding of these technical standards
- Understand the limitations and risks associated with Joint Arrangements and derivatives
Topics to be covered
- Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s)
- Treasury Management Issues for Multi-nationals
- The Use of Derivatives in the Oil& Gas Sector to manage the commodity, currency and interest-rate risks etc.
- British Airways Case Study – Hedging the Oil Price using Futures
Day Five: Creative Accounting and Corporate Governance
Competency Description: There have been many corporate collapses such as Enron and creative accounting has played a large part in these. Higher standards of corporate governance are being expected of leading companies and finance and management professionals should have a good grasp of the issues and current best practice in this area.
- Understanding the issues with creative accounting
- Best practice in corporate governance and ethical behaviour
- Understanding the roles of internal and external auditors
- Understanding how IFRS has developed in response to corporate collapses and the global economic crisis
Topics to be covered
- Creative Accounting – Enron and investor protection
- Leases – IFRS 16 (new standard)
- Auditors and reporting to investors in the oil and gas industry
- External audit investigations and reports
- The Auditor’s ‘Opinion'
- True and Fair
- Sarbanes Oxley
- Internal audits
- Ethical issues
- Corporate governance
- Government regulation
- Investor confidence and share prices
Related Courses click here
- Advanced Finance & Accounting Strategies in the Oil & Gas Industry
- Financial Accounting, Reporting & Business Support in the Oil and Gas Industry
- Oil & Gas Accounting & Performance Measurement
- Oil and Gas Financial Modelling - A Practical Approach
- Cost Planning, Control & Optimization in a Major Oil & Gas Company
- Certificate in Financial Management for Oil and Gas Companies