Professional service firm Deloitte is to advise businesses in the upstream oil and gas sector on what it describes as a “seismic shift” in accounting rules for the sector.
The firm said it would host a seminar in Aberdeen to discuss the International Accounting Standards Board’s recently-published findings and proposals which challenge the fundamentals of accounting for upstream activities in the oil and gas industry under International Financial Reporting Standards (IFRS).
Deloitte said that with everything from recognising the fair value of reserves on the balance sheet to extensive new reserve disclosures under consideration, the proposals are far reaching in their potential impact on IFRS reports in the sector.
The seminar will be designed to brief chief financial officers, financial controllers and audit committee members within the industry on the key issues and potential implications for their organisations.
It will provide an overview of the proposals, which are not yet fixed and have no timescale for implementation, followed by a look at reserve definitions and disclosures, the pros and cons of fair value accounting for oil and gas reserves, and what exploration assets to recognise.
This will be followed by a discussion with members of Deloitte’s oil and gas team.
Graham Hollis, a partner in the audit practice of Deloitte in Aberdeen, said: “In an industry like oil and gas, many companies operate on a global stage.
“It is vital that these businesses understand the fundamentals of the proposed changes to accounting policy to safeguard the future of their exploration, development, production and decommissioning activities.
“These are the first insights into the biggest shake-up in the oil and gas accounting rules since the 1980s, so the level of interest from companies is high.”
The briefing will take place in Deloitte’s offices at 2 Queens Terrace, Aberdeen, on Tuesday, September 29 from 5.30-8pm. To register, contact Laura Penrose on lpenrose@deloitte.co.uk or 0207-007-2272.