Summary:
International Financial Reporting Standards (IFRS) provide the basis
for financial reporting to the capital markets in an increasing number
of countries around the world. Over 100 countries either use or are
adopting IFRS. Those companies already on IFRS have their own
challenges as the pace of standard- setting from the International
Accounting Standards Board (IASB) has been intense in recent years
with a constant flow of changes for companies to keep up with.
One of the major challenges of any reporting framework is how best to
implement it in the context of a specific company or industry. IFRS is
a principles based framework and short on industry guidance. PwC looks
at how IFRS is applied in practice by oil and gas companies. This
publication identifies the issues that are unique to the oil and gas
companies industry and includes a number of real life examples to
demonstrate how companies are responding to the various accounting
challenges along the value chain.
Of course, it is not just IFRS that are constantly evolving but also
the operational issues faced by oil and gas companies with the heavy
demand for capital and risks faced by the industry driving more
cooperative working relationships.
We look at some of main developments in this context with a selection
of reporting topics that are of most practical relevance to oil and
gas companies' activities. The new standards on joint arrangements,
consolidated financial statements and disclosure of interests in other
entities will be of particular interest to companies in the oil and
gas sector.
The debate about specific guidance for exploration, evaluation,
development and production of oil and gas continues. This publication
does not describe all IFRSs applicable to oil and gas entities but
focuses on those areas that are of most interest to companies in the
sector.
The ever-changing landscape means that management should conduct
further research and seek specific advice before acting on any of the
more complex matters raised. PwC has a deep level of insight into and
commitment to helping companies in the sector report effectively. For
more information or assistance, please do not hesitate to contact your
local office or one of our specialist oil and gas partners
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