Entities with oil and gas producing activities  

 - 	Audit and accounting guide .
<br/><br/> ABOUT THE AUTHOR<br/>Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession’s technical and ethical standards.<br/><br/>The AICPA’s founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest. 
<br/><br/>TABLE OF CONTENTS<br/>1 Overview of the Industry .01-.78<br/>The Industry’s History .01-.20<br/><br/>Development of the Oil Industry .02-.07<br/><br/>Development of the Natural Gas Industry .08-.10<br/><br/>Prices for Oil and Gas .11-.13<br/><br/>Recent Developments in the Oil and Gas Industry .14-.20<br/><br/>Origin and Accumulation of Oil and Gas .21-.29<br/><br/>Oil and Gas Reserves .30-.48<br/><br/>The SEC’s Definition of Proved Reserves .33-.37<br/><br/>The Society of Petroleum Engineers’ Definitions of Reserves .38-.40<br/><br/>Determination of Reserves .41-.48<br/><br/>Operations in the Upstream Petroleum Industry .49-.56<br/><br/>Oil Sands .54-.56<br/><br/>Sources of Capital and Organizational Structure of Oil and Gas Entities .57-.66<br/><br/>Joint Interest Arrangements .60<br/><br/>Limited Partnerships .61-.63<br/><br/>Royalty Trusts .64-.65<br/><br/>Other Sources of Capital .66<br/><br/>History of Accounting for Oil and Gas Producing Activities .67-.76<br/><br/>International Standards of Accounting for Oil and Gas .77-.78<br/><br/>2 Primary Business Activities of the Industry .01-.97<br/><br/>Acquisition of Mineral Interests .01-.47<br/><br/>Important Provisions in Lease Contracts .10-.28<br/><br/>Frequently Encountered Transactions for Transferring Mineral Interests .29-.38<br/><br/>Documents and Files Relating to Mineral Interests .39-.47<br/><br/>Basic Concepts of Prospecting and Exploration Activities .48-.66<br/><br/>Prospecting and Exploring for Potential Hydrocarbon-Bearing Structures .52-.59<br/><br/>Other Significant Aspects of Exploration Activities .60-.66<br/><br/>Drilling and Development .67-.85<br/><br/>The Drilling Contract .74-.77<br/><br/>Completing the Well or Plugging and Abandoning the Well .78-.82<br/><br/>Developing the Reservoir .83-.84<br/><br/>The Regulatory Environment .85<br/><br/>Production .86-.97<br/><br/>Workovers .94-.95<br/><br/>Enhanced Recovery Methods .96-.97<br/><br/>3 Accounting for Common Oil and Gas Ownership Arrangements .01-.22<br/><br/>Ownership Arrangements .01-.04<br/><br/>Ownership Arrangements—Mineral Interests .02<br/><br/>Other Arrangements .03-.04<br/><br/>Accounting Models .05-.06<br/><br/>Variable Interest Model (0Variable Interest Entities 0 Subsections of FASB ASC 810-10) .05<br/><br/>Voting Interest Model .06<br/><br/>Special Considerations .07-.12<br/><br/>LLCs .07<br/><br/>Partnerships .08-.12<br/><br/>General Guidance on the Consolidation, Equity, and Cost Methods .13-.22<br/><br/>Consolidation Method .13-.15<br/><br/>Equity Method .16-.21<br/><br/>Cost Method .22<br/><br/>4 Successful Efforts Method and General Accounting for Oil and Gas Activities .01-.160<br/><br/>General .01-.08<br/><br/>Accounting for Acquisition, Exploration, and Development Costs .09-.23<br/><br/>Acquisition Costs .09<br/><br/>Exploration Costs .10-.16<br/><br/>Development Costs .17-.22<br/><br/>Interest Capitalization .23<br/><br/>Amortization of Capitalized Costs .24-.30<br/><br/>Impairment Tests for Capitalized Costs .31-.40<br/><br/>Unproved Properties .32-.36<br/><br/>Proved Properties .37-.40<br/><br/>Conveyances .41-.50<br/><br/>Accounting for Production .51-.69<br/><br/>Revenue .52-.62<br/><br/>Inventory .63-.66<br/><br/>Operating Expenses .67-.69<br/><br/>Asset Retirements, Environmental Liabilities, Abandonments, Involuntary Conversions, Expropriations, and Joint and Several Liabilities .70-.87<br/><br/>AROs .70-.75<br/><br/>Environmental Liabilities .76<br/><br/>Abandonments .77-.78<br/><br/>Involuntary Conversions .79-.84<br/><br/>4 Successful Efforts Method and General Accounting for Oil and Gas Activities—continued Expropriations .85<br/><br/>Joint and Several Liability Arrangements .86-.87<br/><br/>Lease Arrangements .88-.89<br/><br/>Discontinued Operations and Asset Held for Sale Considerations .90-.96<br/><br/>Goodwill and Business Combinations .97-.105<br/><br/>Goodwill Impairment .103-.105<br/><br/>Derivative Commodity Contracts .106-.117<br/><br/>Fair Value Measurement .118-.138<br/><br/>Definition of Fair Value .119-.120<br/><br/>Application to Nonfinancial Assets .121-.123<br/><br/>Application to Liabilities and Instruments Classified in a Reporting Entity’s Shareholders’ Equity .124-.126<br/><br/>Valuation Techniques .127-.129<br/><br/>Present Value Techniques .130-.131<br/><br/>The Fair Value Hierarchy .132-.134<br/><br/>Fair Value Disclosures .135-.138<br/><br/>Disclosure Requirements for Oil and Gas Entities .139-.160<br/><br/>General .139-.142<br/><br/>Accounting Policy Disclosures .143<br/><br/>Suspended Well Disclosures .144-.145<br/><br/>FASB ASC 932 Disclosures .146-.151<br/><br/>Other Disclosure Matters .152<br/><br/>Additional Disclosures for Entities Following the Full Cost Method of Accounting .153<br/><br/>SEC Disclosures—Subpart 1200 of Regulation S-K .154-.158<br/><br/>Exchange Offer Disclosures .159-.160<br/><br/>5 Full Cost Method of Accounting for Oil and Gas Activities .01-.61<br/><br/>General .01-.06<br/><br/>Accounting for Acquisition, Exploration, and Development Costs .07-.08<br/><br/>Capitalization of Interest .08<br/><br/>Amortization of Capitalized Costs .09-.18<br/><br/>Excluded Costs .15-.18<br/><br/>Impairment Tests for Capitalized Costs .19-.35<br/><br/>Cost Center Ceiling Test .19-.28<br/><br/>Applications Involving a New Country .29-.35<br/><br/>Accounting for Production .36<br/><br/>5 Full Cost Method of Accounting for Oil and Gas Activities—continued Asset Retirements, Environmental Liabilities, Abandonments, Involuntary Conversions, and Expropriations .37-.42<br/><br/>Abandonment of Unevaluated (Unproved) Properties .37<br/><br/>Revisions and Settlements of AROs .38-.42<br/><br/>Fair Value Measurements .43<br/><br/>Lease Arrangements .44<br/><br/>Conveyances .45-.48<br/><br/>Discontinued Operations .49<br/><br/>Goodwill .50-.55<br/><br/>Goodwill—Property Disposals .51-.55<br/><br/>Other Matters .56<br/><br/>Management Fees and Other Income .56<br/><br/>Commodity Derivative Activities .57<br/><br/>Disclosure Requirements .58-.61<br/><br/>Additional Disclosure Requirements for Full Cost Entities .59-.61<br/><br/>6 Accounting for International Oil and Gas Activities .01-.43<br/><br/>Overview .01-.04<br/><br/>International Contractual Arrangements .05-.14<br/><br/>Concessions .07<br/><br/>Production Sharing Contracts .08-.09<br/><br/>Service Contracts .10-.11<br/><br/>Other Arrangements .12-.14<br/><br/>Royalty, Production Taxes, and Income Taxes .15-.28<br/><br/>Royalty .17-.18<br/><br/>Production Tax .19-.20<br/><br/>Income Tax .21-.28<br/><br/>Reporting International Proved Reserves .29-.34<br/><br/>Asset Retirement Obligations in International Operations .35-.40<br/><br/>The Foreign Corrupt Practices Act of 1977 .41-.43<br/><br/>7 Tax Considerations .01-.37<br/><br/>General .01-.03<br/><br/>Income Taxes .04-.25<br/><br/>Intangible Drilling and Development Costs .06-.10<br/><br/>Depletion .11-.15<br/><br/>Common Temporary Differences .16-.17<br/><br/>Conveyances .18<br/><br/>Accounting for Temporary Differences in Asset Acquisitions .19-.21<br/><br/>7 Tax Considerations—continued FASB ASC 740-10—Uncertain Tax Positions .22-.24<br/><br/>Net Operating Losses—Valuation Allowances .25<br/><br/>Other Common Tax Matters .26-.30<br/><br/>Ad Valorem and Severance Taxes .26-.27<br/><br/>EOR Credit (Section 43) .28<br/><br/>Credit for Production of Oil and Gas From Marginal Wells (American Jobs Creation Act of 2004) .29<br/><br/>Deduction for Income Attributable to Domestic Production Activities .30<br/><br/>International Operations .31-.37<br/><br/>U.SForeign Tax Credit .31-.32<br/><br/>Taxes in Foreign Jurisdictions .33-.37<br/><br/>8 Auditing .01-.175<br/><br/>Overview .01-.03<br/><br/>Planning Related Auditing Considerations .04-.20<br/><br/>Objectives of the Auditor .04-.05<br/><br/>The Importance of Exercising Professional Skepticism .06<br/><br/>Audit Planning .07-.08<br/><br/>Audit Risk .09-.13<br/><br/>Determining Materiality and Performance Materiality When Planning and Performing an Audit .14-.17<br/><br/>Use of Specialists .18-.20<br/><br/>The Use of Assertions When Identifying and Assessing the Risks of Material Misstatement .21-.24<br/><br/>Understanding the Entity, Its Environment, and Identifying and Assessing the Risks of Material Misstatement .25-.55<br/><br/>Risk Assessment Procedures .29-.31<br/><br/>Industry, Regulatory, and Other External Factors .32<br/><br/>Nature of the Entity and Its Operations .33-.48<br/><br/>Understanding of Internal Control .49-.55<br/><br/>Assessment of Risks of Material Misstatement and the Design of Further Audit Procedures .56-.76<br/><br/>Assessing the Risks of Material Misstatement .56-.59<br/><br/>Designing and Performing Further Audit Procedures .60-.68<br/><br/>Auditing Accounting Estimates and Related Disclosures .69-.76<br/><br/>Evaluating the Sufficiency and Appropriateness of the Audit Evidence Obtained .77<br/><br/>Written Representations From Management .78-.79<br/><br/>Evaluating Misstatements Identified During the Audit .80-.83<br/><br/>8 Auditing—continued Additional Audit Considerations .84-.87<br/><br/>Audit Documentation .84<br/><br/>Audit Evidence .85-.87<br/><br/>Communication With Those Charged With Governance .88<br/><br/>Additional Considerations for Specific Audit Areas .89-.157<br/><br/>Oil and Gas Properties—Acquisition, Exploration, and Development Activities .90-.107<br/><br/>Depreciation, Depletion, and Amortization .108-.110<br/><br/>Impairment .111-.116<br/><br/>Oil and Gas Property Conveyances .117-.121<br/><br/>Production .122-.143<br/><br/>Payables .144-.150<br/><br/>Asset Retirement Obligations .151<br/><br/>Tax and Other Regulatory Matters .152-.153<br/><br/>Derivatives and Hedging Activities .154-.156<br/><br/>Auditing Fair Value Measurements .157<br/><br/>Other Audit Considerations .158-.164<br/><br/>Statement of Cash Flows .158-.159<br/><br/>Commitments and Contingencies .160-.161<br/><br/>Risks and Uncertainties .162<br/><br/>Related Parties .163-.164<br/><br/>Supplementary Oil and Gas Reserve Disclosure Considerations and Related Procedures .165-.175<br/><br/>Reserve Quantity and Value Disclosures .165-.171<br/><br/>Supplementary Oil and Gas Reserves Procedures .172-.175<br/><br/>9 Internal Control Considerations .01-.81<br/><br/>Definition of Internal Control and Internal Control Framework .02-.07<br/><br/>Internal Control Framework .02-.04<br/><br/>Internal Control Over Financial Reporting .05-.07<br/><br/>Internal Control Considerations for Audit of a Nonpublic Entity .08-.10<br/><br/>Reporting Requirements for a Public Entity .11-.16<br/><br/>Evaluating the Effectiveness of Internal Control by Management .17-.22<br/><br/>Components of Internal Control .17-.22<br/><br/>Common Control Activities for Oil and Gas Entities .23-.72<br/><br/>Acquisition of Mineral Interests .24-.32<br/><br/>Exploration and Development Activities .33-.49<br/><br/>Exploration, Development, and Production—Nonoperator .50<br/><br/>9 Internal Control Considerations—continued Production .51-.62<br/><br/>Other Control Areas .63-.69<br/><br/>Computer Based Controls .70-.72<br/><br/>Control Over Financial Statement Disclosures Specific to Oil and Gas Entities .73-.81<br/><br/>Control Over Compliance With Tax and Regulatory Requirements .79-.81<br/><br/>Appendix<br/><br/>A Guidance Updates<br/><br/>B Clarified Auditing Standards and PCAOB Standards<br/><br/>C Summary of the Successful Efforts and Full Cost Methods of Accounting<br/><br/>D Sample Management Representations for Entities With Oil and Gas Producing Activities<br/><br/>E International Financial Reporting Standards<br/><br/>F Schedule of Changes Made to the Text From the Previous Edition<br/><br/>Glossary and Other Commonly Used Industry Terms<br/><br/>Index of Pronouncements and Other Technical Guidance<br/><br/>Subject Index 
<br/><br/> First update in 2 years! This publication includes over 200 pages of invaluable guidance to help you improve your industry knowledge, fine-tune your strategies, and provide high-quality services to your clients.<br/><br/>This 2014 edition provides important technical guidance, summarizes new standards and practices, and delivers "how-to" advice for handling audit and accounting issues that will be critical to your success.<br/><br/>As fluctuating oil prices, off-shore drilling, and other energy-related issues impact the way your clients conduct business, it’s essential to have a keen understanding of the domestic and international topics and trends facing the oil and gas industry today. 
<br/><br/><label>ISBN: </label>9781119448761 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Petroleum industry and trade --Auditing.--United States <br/>Finance, Public --Auditing.--United States
<br/><br/><label>Index Terms--Genre/Form: </label><br/>Electronic books.
<br/><br/><label>Dewey Class. No.: </label>338.2728