A Comprehensive Guide to IFRS Accounting in the Upstream Oil and Gas Sector

In the ever-evolving world of accounting, staying updated with the latest standards and practices is imperative, especially for professionals working in the dynamic oil and gas industry. This course will take you on a journey through the intricacies of International Financial Reporting Standards (IFRS) in the context of the upstream oil and gas sector, with a specific focus on the challenges presented by production sharing contracts and joint venture partnerships.

1. Introduction: The World of IFRS and Oil & Gas

To kick things off, let's understand the fundamental concepts of IFRS and how they intersect with the oil and gas industry. We'll delve into the unique challenges that professionals face when dealing with production sharing contracts and joint venture partners.

2. Successful Efforts Method: Exploration, Development, and Production

Under this heading, we'll explore the successful efforts method, a core practice in the industry, and its application in the various stages of exploration, development, and production. We'll also consider the national accounting practices, particularly US GAAP.

3. Alternative Accounting Treatments: Full Cost Capitalisation

A closer look at alternative accounting treatments, such as full cost capitalisation, and their relevance within the realm of IFRS. We'll examine where and when such treatments are permitted by IFRS.

4. The Model PSC: A Practical Illustration

Throughout this course, we'll work with a model Production Sharing Contract (PSC) to provide a tangible example of the accounting implications and economic considerations involved in the oil and gas industry.