Oil and Gas Accounting

Introduction

What is oil and gas accounting?

Certain complicated and accounting issues are found in the Oil and Gas industry that require an accountant to be professional enough, such as holding an Oil and Gas Accounting certificate to efficiently solve the issues and ensure high-profit margins.

What type of industry is oil and gas?

The Oil and Gas companies demand that the accountants be efficient in identifying and predicting various risks using effective methods and know essential topics like take-or-pay arrangements, the unit of production method, complete cost method, severance taxes, etc., to adopt strategies avoid risks and potential loss. Moreover, standardized reporting is a crucial hot topic and skill that Oil and Gas sector demands.

Talents’ courses are specifically designed to satisfy the ever-changing requirements and needs of the relevant industries. The Oil and Gas Accounting Certification Course would train the trainees to perform excellently to overcome the challenges that accountants face during their job tenure. All the accounting topics and areas required in Oil and Gas industry are explained, and professionals are guided to practice them in this sector.

Course Objectives

The critical objectives and aims of this course are to help trainees with:

• Identifying the major long-term issues in the Oil and Gas (O&G) sector
• Analyzing different factors such as finance, commercial, and economic affecting the operations, profitability, and process of the O&G companies
• Using critical tools and technologies required to measure the performance
• Assisting the decision-makers in deciding by using accurate analysis
• Improve the corporate governance
• Managing projects efficiently
• Generating reports for skills measurement and performance by using the latest techniques and tools
• Identifying potential risks
• Learning and applying risk management techniques
• Knowing all the international standards for accounting
• Creating financial statements as per IFRS
• Performance measurement of multinational O&G companies

Who Should Attend?

• An accountantworking in the O&G industry and responsible for identifying risks and developing strategies to avoid and manage them
• Professionalsin the finance and accounting fields who actively and closely work to treasury and budgeting
• Professionalswhose duties involve management and reporting in the O&G industry
• Business Consultant, interested in the O&G companies
• Cost Analysts, working in the O&G companies
• Managerswhose work includes management of the accountants
• Any personwith interest in the accounting domain of the O&G industry
• Financial plannersof the O&G sector
• Junior and mid-level accountantswho want to excel in their jobs
• Professionalswho are interested in forecasting and reporting techniques

Course Outlines

Following are the essential topics that an accountant in the O&G industry should know to excel in their jobs:

Module 1: Introduction to Oil and Gas Industry & the ongoing issues faced

• Characteristics of the O&G industry and companies
• The O&G industry and companies’ nature
• Ongoing issues and challenges encountered by the O&G industry

Module 2: Overview of the Accounting in the O&G industry

• Reserves
• Resources
• Accounting and reporting principles
• Duties and responsibilities of an Accountant in the O&G sector

Module 3: Functions to be performed while producing new products (Oil and Gas) related to accounting

• Exploration
• Costs in Acquisition
• Development
• Production
• Profit oil
• Cost oil

Module 4: Accounting methodologies and techniques in the O&G industry

• O&G companies’ international standards
• Techniques of accounting in the Oil and Gas sector
• Asset’s accounting and impacts of assets
• Cost accounting
• Revenue Accounting

Module 5: Certain unique topics of accounting and finance related to the O&G industry

• IFRS
• GAAP
• Joint venture agreements
• Interpretation of Ratio Analysis
• Financial statements
• Profit and loss in this industry

Module 6: IFRS and the O&G industry

• IFRS 6 (mineral asset’s exploration and evaluation)
• IAS 16 (Equipment, Plant and property)
• IAS 36 Asset’s impairment
• IFRS 9 and IAS 39 (measurement and recognition)
• DD&A

Module 7: Measuring performance to improve efficiency via analysis and reporting

• Beginner Analysis (assessing the financial state of the company, cash flow analysis, and income statement)
• Benchmarking
• Analysis of capital investment by using different factors such as IRR, NPV, ARR, and payback

Module 8: Measurement of reserves of Oil and Gas

• Managing oil and gas
• Analysis of the reserves and assets of the O&G company

Module 9: Risk management in the O&G industry

• Understanding the market
• Identifying various types of risks (non-financial, financial, external, and internal)
• Assessing the risk

Module 10: Auditing and reporting

• Legal requirements
• The audit committee and board
• Duties and roles of the audit committee and board
• Developing plan for companies’ stability and growth