INTRODUCTION

This 5-day training seminar on IFRS for the Oil & Gas and Petrochemical Sectors (covering Upstream, Midstream, and Downstream) provides a foundational understanding of accounting, reporting, and performance measurement specific to the oil and gas industry.

Participants will enhance their ability to prepare, utilize, and critically assess financial information related to various oil and gas activities, leveraging industry-specific knowledge and analytical skills.

 Seminar Features:
– In-depth analysis and evaluation through practical case studies
– Facilitated group discussions addressing current issues, policies, and procedures
– Real-world challenges faced by delegates and other oil and gas companies

Objectives
By the end of the seminar, participants will be able to:
– Understand the accounting standards, policies, and practices relevant to the Oil & Gas industry
– Recognize the financial implications of Production Sharing Contracts and other agreements with host governments
– Examine guidelines for accounting in Joint Ventures
– Identify and apply international and national accounting standards applicable to the industry
– Enhance the relevance and reliability of financial reports to better meet stakeholder needs
– Utilize publicly available data for benchmarking industry performance

Training Methodology
Each topic is introduced with an illustrated presentation covering accounting activities, methods, and reporting issues. Learning is reinforced through worked examples, followed by individual or group exercises. Participants will receive full solutions and engage in discussions, with opportunities for questions. Relevant extracts from the annual reports of international oil and gas companies will be analyzed. At the end of each day, one-on-one sessions with the seminar leader will allow for additional questions and clarification of material.

Organizational Impact
Organizations will benefit from employee participation through:
– Enhanced knowledge and skills that benefit the entire organization
– Improved legal compliance with current requirements
– Insights into major accounting challenges within the sector
– Application of IFRS tailored to organizational needs
– Support for corporate governance and risk reduction
– More effective contributions to financial decision-making

Personal Impact
Participants will gain:
– Skills and knowledge to advance their professional careers
– Up-to-date tools and techniques relevant to their roles
– Enhanced decision-making abilities aimed at minimizing risk
– Improved skills that increase their value to the organization
– Better communication with colleagues across departments regarding industry practices and issues
– A deeper understanding of their roles and the significant issues they face

WHO SHOULD ATTEND?
This seminar is designed for individuals with a basic understanding of accounting who wish to deepen their knowledge of financial reporting practices in the Oil & Gas and Petrochemical industries (Upstream, Midstream, and Downstream). It is particularly suitable for:
– Corporate Accountants, Financial Controllers, and Treasury Officers
– Finance staff in General Accounting, Payables, Receivables, Inventory, and Fixed Assets
– Joint Venture Accountants and Auditors
– External, Financial, and Internal Auditors
– Government Regulators and Auditors
– Financial and Investment Analysts

 Course Outline

DAY 1: Major Accounting Issues and IFRS Role
– Key accounting challenges in the Oil & Gas and Petrochemical sectors
– Current accounting issues impacting the industry
– Effects of commodity prices, currency fluctuations, and political/environmental factors
– The strategic development impact within the industry
– Introduction to IFRS and its relevance to the Oil & Gas sector
– Analysis of annual reports and financial statements from leading international companies

DAY 2: Asset Accounting
– IAS 16: Property, Plant, and Equipment; Depletion, Depreciation & Amortization
– IAS 36: Impairment of Assets
– IFRS 6: Exploration for and Evaluation of Mineral Assets
– IFRS 13: Fair Value Measurement
– IAS 2: Inventories
– Reserve Reporting

DAY 3: Business Combinations and Joint Ventures
– IFRS 3: Business Combinations
– IFRS 10: Consolidated Financial Statements
– IAS 38: Intangible Assets
– IFRS 12: Disclosure of Interests in Other Entities
– IFRS 11: Joint Arrangements
– Concepts of Break Even Oil, Cost Oil, and Profit Oil

DAY 4: Cash Flow and Financial Instruments
– IAS 7: Statement of Cash Flows
– Use of Derivatives in managing commodity, currency, and interest rate risks
– Treasury management issues for multinationals
– IFRS 7: Financial Instruments: Disclosures
– IFRS 9: Financial Instruments
– Evaluating cash flow and financial instruments in leading companies

DAY 5: Creative Accounting and Corporate Governance
– Understanding creative accounting practices
– Case study: Enron and investor protection
– Overview of corporate governance
– Roles of the Board and Audit Committee
– External auditing and its reporting to investors
– Internal auditing: Defining and developing the internal audit process

This seminar equips participants with the skills and knowledge necessary to navigate the complexities of IFRS in the oil and gas sector, ultimately enhancing their professional capabilities and organizational contributions.