Oil and Gas Business Training > Financial Reporting & Compliance for International E&P (IFRS) - Virtual Instructor Led Training

About this Virtual Instructor Led Training

IFRS is being adopted by a growing number of countries and companies so clear understanding of the rules and regulations is important as are the current trends in reporting and disclosures.

This 5 half-day advanced-level Virtual Instructor Led Training (VILT) course aims to provide those already familiar with accounting for E&P activities, with a thorough understanding of international financial reporting standards and disclosure requirements necessary for listed and large private companies with government or institutional investors.

This VILT course aims to enable you to gain a clear understanding of current international financial reporting standards (IFRS) and disclosure requirements as they affect E&P activities. In addition, the main problems encountered when adopting IFRS for E&P company reporting are identified and methods for addressing them are clearly explained.

From attending this advanced-level Virtual Instructor Led Training (VILT) course, you will be able to:

  • Be familiar with the current list of international financial reporting standards (IFRS & IAS), the bodies that regulate accounting (IASB) and reporting requirements as they relate to accounting for international E&P activities. You will also understand the IFRS conceptual framework, the format for financial statements required including cash flow statements and the definitions of assets, liabilities, equity, revenue and expenses used under IFRS.
  • Understand the main accounting policies used by E&P companies, know the difference between successful efforts and full cost accounting, the stages of an upstream oil and gas project lifecycle and its importance in determining the correct accounting treatment for expenditure incurred during each stage of the lifecycle, understand the value chain for E&P companies and be able to determine the impact of adopting different accounting policies on performance reported in the financial statements.
  • Understand the problem E&P companies face in meeting the normal criteria for recognition of an asset (IAS 16 and 37) and the interim guidance provided by IFRS 6: the new terminology (E&E assets, CGU), the ability to reclassify E&E assets, and how and when to carry out impairment tests on E&E assets.
  • Learn the definitions of subsidiary, associate, control and significant influence under IFRS which relate to group accounting and segment reporting (IFRS 3, 10, 11 and 12; IAS 27 & 28).
  • Know the correct accounting treatment under IFRS for: pre-project and pre-acquisition costs; joint venture exploration and evaluation costs (IFRS 6), development costs (IAS 16 and 37) and producing operations.
  • Understand the problems of revenue recognition under IFRS (IAS 18) for oil and gas operations, know how to calculate and report revenue in underlift and overlift positions, for gas sales contracts that includes a “take or pay” clause and the effect of IFRS 15, Revenue from Contracts with Customers.
  • Apply the various methods for calculating DD&A, know when assets must be depreciated, which assets can be grouped under IFRS for depreciation purposes and how to adjust DD&A rates for an upward or downward revision in the reserve base. Be able to carry out an impairment test of capitalised producing assets (IAS 36).
  • Know how to account for investments (IAS 40), inventories (IAS 2), borrowing costs – which assets qualify and for how long borrowing costs can be capitalised (IAS 23), intangible assets (IAS 38), provisions, contingent assets & liabilities (IAS 37) and lease costs (IFRS 16).
  • Know how to account for discontinued operations, assets held for sale and the concept of “fair value” in the context of acquisition accounting (IFRS 13). Understand the difference between equity and acquisition accounting, the treatment of and disclosure requirements for accounting for corporate acquisitions and disposals and, at the asset level, farm-in and -out activities of proved and unproved properties.
  • Understand the different methods for estimating oil and gas reserves, their use in accounting, reserve classification and reporting and the disclosure requirements. Know the disclosure requirements for post balance sheet events, related party transactions, segment reporting (IFRS 8), reporting key performance indicators, benchmarking, compliance with IFRS and differences between IFRS and US GAAP.

This VILT course has been developed for accounting and finance staff within the industry who need to understand the fundamentals of financial reporting and compliance for upstream oil and gas companies.

It is also relevant to those within the industry who have responsibility within their area of activity to provide information to be used for financial purposes and to use information provided by finance and accounts for analysis in decision-making.

Suggested attendees include, but not limited to:

  • Asset Managers
  • Budgeting & Planning Executives
  • Controllers
  • Economists
  • Financial Accountants
  • Financial Analysts and Modellers
  • Internal Auditors
  • Joint Venture Accountants
  • Management Accountants

The VILT course will be delivered online in 5 half-day sessions comprising 4 hours per day, with 2 breaks of 10 minutes per day.

Course Duration: 5 half-day sessions, 4 hours per session (20 hours in total).

Your course leader is an oil and gas consultant specialising in commercial, financial and accounting matters. In a career spanning over 35 years he has worked in the UK, Denmark, Netherlands, Norway, Yemen, Oman, Guatemala, Colombia and Egypt. He has significant sector-specific financial, transactional and commercial experience gained at senior management and board level.

His industry experience includes listing an E&P Company on AIM, Debt and Equity Fundraising, Annual Report and Accounts, Mergers and Acquisitions, Deal Negotiation and Closure, General Management, Project Evaluation, Negotiation of Exploration and Exploitation Licences, Negotiation of Joint Operating Agreements, Financial Management, Internal and Joint Venture Accounting and Reporting, Accounting Design and Implementation.

Previous roles included CFO & Company Secretary for Taghmen Energy Plc, General Manager for LUKoil’s operations in Egypt, Finance Director of Felix Mining Ltd, and Deputy General Manager & Finance Manager for Nimir Petroleum Company, Yemen. From 1989 to 1992, he worked for Kerr McGee plc as Accounting Manager, UK. Prior to 1989, he worked for Texas Eastern North Sea (UK) Inc, Charterhouse Petroleum plc and Phillips Petroleum (Europe Africa) Inc. He holds an Honours Degree in Economics from the University of Wales, Swansea and is a Fellow of the Institute of Chartered Management Accountants.

To further optimise your learning experience from our courses, we also offer individualized “One to One” coaching support for 2 hours post training. We can help improve your competence in your chosen area of interest, based on your learning needs and available hours. This is a great opportunity to improve your capability and confidence in a particular area of expertise. It will be delivered over a secure video conference call by one of our senior trainers. They will work with you to create a tailor-made coaching program that will help you achieve your goals faster.
Request for further information about post training coaching support and fees applicable for this.