{"id":294,"date":"2009-10-12T11:07:42","date_gmt":"2009-10-12T17:07:42","guid":{"rendered":"http:\/\/cfo.markbaileyco.com\/?p=294"},"modified":"2009-10-12T11:07:42","modified_gmt":"2009-10-12T17:07:42","slug":"oil-and-gas-accounting-under-sec-release","status":"publish","type":"post","link":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/2009\/10\/12\/oil-and-gas-accounting-under-sec-release\/","title":{"rendered":"Oil and Gas Accounting and Disclosure Rules Revised under SEC Release 33-8995"},"content":{"rendered":"

\"OilLast Friday, the AICPA released a discussion draft of the audit and accounting guide for Entities with Oil and Gas\u00a0 Producing Activities<\/a>. While not authoritative\u00a0 it is anticipated to reflect the current standards being revised by both the Financial Accounting Standards Board which sets US GAAP, and the International Accounting Standards Board, all of which is being done in response to SEC Release 33-8995<\/a>.<\/p>\n

While the changes are too voluminous and complex to even summarize here, I’ve included links and welcome questions,comments to this post or phone calls to discuss the implications.<\/p>\n

The definitions in Rule 4-10 have been significantly changed. The pricing mechanism for reserves has been defined as a twelve month average. The definition of what is and is not considered ‘oil and gas’ has been clarified to include bitumen and other saleable hydrocarbon resources (geothermal has been excluded); the definitions of ‘proved’ ‘unproved’, ‘developed’ and ‘undeveloped’ reserves has been amended and clarified; and the disclosure requirements under Regulation S-K has been expanded.<\/p>\n

Additionally, the disclosure requirements within the financials and for the K’s and Q’s\u00a0 have been expanded and clarified including the disclosure requirements for MD & A. The SEC continues to coordinate with the FASB and the IASB who continue to develop their standards for the oil and gas entities. Given the SEC has come to the party first, it’s hard to imagine the other standard setting bodies will do anything but comply.<\/p>\n

Foreign filers<\/strong> using Form 20-F will be subject to the same disclosure as opposed to the previous disclosure requirements summarized under Appendix A. Canadian filers<\/strong>, however, will not be subject to the new disclosure rules given that the requirements under the Multi-Jurisdictional Disclosure System (MJDS) using form 40-F are already consistent.<\/p>\n

Now some good news<\/strong>. The implementation date\u00a0 for registrations filed and for annual reports on Forms 10-K and 20-F is for fiscal years ending on or\u00a0 after January 1, 2010. While the implementation is mandatory, “a company may not apply the new rules to disclosures in quarterly reports prior to the first annual report in which the revised disclosures are required”.\u00a0 Implementation may\u00a0 be deferred as discussions between the SEC, FASB and IASB go forward.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last Friday, the AICPA released a discussion draft of the audit and accounting guide for Entities with Oil and Gas\u00a0 Producing Activities. While not authoritative\u00a0 it is anticipated to reflect the current standards being revised by both the Financial Accounting Standards Board which sets US GAAP, and the International Accounting Standards Board, all of which … Continue reading “Oil and Gas Accounting and Disclosure Rules Revised under SEC Release 33-8995”<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,37,11],"tags":[181,58,182,183,78,184,185,186,187,188,189,190],"class_list":["post-294","post","type-post","status-publish","format-standard","hentry","category-accounting","category-decomplexifying-accounting","category-sec-compliance","tag-accounting-guide","tag-aicpa","tag-disclosure-requirements","tag-disclosure-system","tag-fasb","tag-financial-accounting-standards","tag-financial-accounting-standards-board","tag-iasb","tag-international-accounting-standards","tag-oil-and-gas","tag-sec-release","tag-sec-release-33-8995"],"_links":{"self":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=294"}],"version-history":[{"count":0,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/294\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}