Financial Accounting, Reporting & Business Support in the Oil and Gas Industry

Why Select this Training Course?

The Rcademy course on Financial Accounting, Reporting & Business Support in the Oil and Gas Industry is designed to provide participants with the skills and knowledge required to understand oil and gas financial accounting, reporting, and business support. The course covers the various reporting frameworks used in the oil and gas industry and the techniques employed in evaluating financial transactions. Participants will also learn risk management techniques, using derivatives to manage and control interest rates, oil prices, and exchange rates. Focus is also given to issues relating to government assurance and risks, cost estimation, earned value management, budgeting forecasts, capital contracting, and procurement.

What are the significant sectors of Oil and Gas Accounting?

Accounting practices and principles in the oil and gas industry differ from those in everyday financial accounting. Oil and Gas operations utilize some of the most different accounting practices in any industry. Oil and Gas accounting focuses on exploration, development, acquisition, and production activities bothering various industry-specific accounting issues. Additionally, upstream companies utilize different accounting departments from midstream and downstream companies with unique goals. However, the main fields of accounting in the oil and gas industry cover refining, production, market to end-users, transportation, development, and exploration.

What is the financial reporting framework used in the Oil and Gas industry?

The framework ensures cross-border transparency in financial reporting among multinational companies and corporations. Oil companies use the International Financial Reporting Standards (IFRS) to present financial reports. The IFRSs constitute standardized reporting methods, describing a company’s financial position and performance so that the firm’s financial statements are understandable beyond international boundaries. The standards under the IFRSs consist of insurance contracts, operating segments, leases, business combinations, share-based payment, fair value measurement, and consolidated financial statements.

Who Should Attend?

The Financial Accounting, Reporting & Business Support in the Oil and Gas Industry Training Course by Rcademy is for experts and professionals engaged in financial accounting, reporting, and business support in the oil and gas industry and every person who wishes to enhance their knowledge of such practices. The following individuals should attend this course:

• Accounting executives: tasked with designing business plans to reach established quotas and goals in an oil-producing company
• Financial reporting managers: charged with supervising the preparation and distribution of financial statements at specified intervals for external usage
• Financial executives: responsible for a company’s financial transactions, including income and expenses, and managing tax planning, budgeting, and cash flow statements
• Budgeting officers: responsible for implementing budgeting and financial maintenance procedures to ensure effective coordination of different accounts
• Cost controllers: charged with controlling a company’s costs, including designing, handling, and forecasting the company’s budget
• Auditors: responsible for monitoring a company’s cash flow and accounts to ensure they are correctly processed and recorded
• Treasurers: tasked with managing the general financial transactions and fundraising activities of a company
• Regulatory compliance experts: responsible for ensuring that a company’s financial activities are within established regulatory and legal standards
• Economists: tasked with preparing charts, tables, and reports and evaluating the distribution of goods and services
• Asset officers: responsible for managing the assets of a company and ensuring all company’s assets are kept are optimal standards
• Business development executives: tasked with developing business ideas and plans that ensure a company’s growth
• Production executives: charged with allocating labor resources, monitoring production schedules, and cost adjustments
• Tax accountants: tasked with assisting companies and clients with the analysis of financial and income tax statements
• Professionals interested in learning about financial accounting and reporting in the oil and gas industry

What are the Course Objectives?

The Rcademy course on Financial Accounting, Reporting & Business Support in the Oil and Gas Industry is designed to help participants achieve the following outcomes:

• Understand the rudiments of financial accounting in the oil and gas industry and how they differ from other accounting methods
• Learn about the IFRS and how they impact financial reporting in the oil and gas industry
• Learn about crucial financial accounting techniques and methods
• Improve project controls, performance, measurement, and overall corporate governance
• Evaluate the financial, commercial, and economic drivers
• Deliver timely and vital information for stakeholders in the industry
• Learn how to develop long-term skills that address challenges facing the oil and gas sector

How will this Course be Presented?

This course is participant-oriented and is specially designed to meet participants’ expectations and enhance their knowledge and skills. Different renowned approaches and techniques that will ensure constant and active learning by the participants will be employed in presenting this course. The course will be taught by experts with various years of experience and practice. The course modules are curated from in-depth and extensive research on the subject matter.

The Rcademy course on Financial Accounting, Reporting & Business Support in the Oil and Gas Industry integrates practical and theoretical learning by offering participants slides on the concept, case studies, lecture notes, and real-life scenarios. Attendees will also be able to partake in quizzes, presentations, seminar workshops, and constant feedback on the lessons learned to confirm their optimal satisfaction.

What are the Topics Covered in this Course?

Module 1: Understanding Basics of the Oil and Gas Industry

• Nature and features of the Oil and Gas sector
• Definition of resources and reserves
• Current challenges in obtaining access to reserves
• Reporting and accounting principles in oil and gas
• Financial reporting frameworks for the Oil and Gas sector
• Full cost vs successful efforts
• The Roles of financial professionals in the Oil and Gas Sector

Module 2: Accounting for Upstream Activities Using the IFRS

• Assets
• Reserves and resources
• Impairment of development, production, and downstream assets
• Revenue recognition
• Exploration and evaluation
• Depletion, depreciation, and amortization (DD&A)

Module 3: Oil and Gas Accounting Techniques and Methods

• Accounting for production activities
• Acquisition costs
• Expenses of depreciable assets
• Asset retirement obligations and asset impairment
• Non-drilling exploration costs
• Drilling and development costs

Module 4: Risk Management

• Introduction and definition of terms
• Understanding the market and risks
• Hedging using derivatives
• Application and importance of risk management
• A probabilistic methodology using the Monte Carlo simulation
• Designing and managing contingencies

Module 5: Specific Financial Data in Oil and Gas

• Financial statements
  – Income statements
  – Cashflow statements
  – Statement of financial position
• Profitability of Oil and Gas companies
• Differences between the International Financial Reporting Standards (IFRS) and GAAP
• Ratio analysis and interpretation
• Product sharing agreements and joint ventures

Module 6: Midstream and Downstream Activities

• Overview
• Broker-dealer inventories
• Oil and gas balances
• Oilfield services
• Accounting for Emissions Trading System (ETS)
• Depreciation of downstream assets
• Spare part inventories
• Inventory analysis
• Cost, insurance, and freight vs free onboard
• Emissions trading schemes

Module 7: Accounting for Assets in the Oil and Gas and Petrochemical Sector

• Reserve reporting
• Fair value measurement
• Property, plant, and equipment and DD&A
• Inventory analysis
• Exploration and evaluation of mineral assets and their accounting techniques

Module 8: Capital Contracting, Project Performance, and Reporting

• Recognizing business needs
• Contract management
• Developing, measuring, and reporting Key Performance Indicators (KPIs)
• Designing contracting tactics and strategies
• Earned value management for Oil and Gas

Module 9: Auditing

• Recognizing risks associated with the Oil and Gas industry
• The risk management process
• Efficient planning, stability, and growth
• Compliance and legal requirements
• The board and audit committee
• Designing an audit report
• Reporting to stakeholders

Module 10: Corporate Governance and Creative Accounting

• Enron and investor protection
• Auditors and reporting to investors within the oil and gas sector
• External audit investigations and reports
  – True and fair
  – Internal audits
  – The auditor’s opinion
  – Sarbanes Oxley
• Leases (IFRS 16)
• Corporate governance and investor confidence
• Government regulations
• Ethic challenges

Module 11: Accounting for Production Sharing Agreements (PSAs), Joint Ventures, and Business Combinations

• Intangible assets
• Business combinations
• Joint arrangements
• Consolidated financial statements
• Breakeven oil, profit oil, and cost oil
• Disclosure of interests and related entities