OIL AND GAS ACCOUNTING - swlearning.com

555 CHAPTER15 OIL AND GAS ACCOUNTINGLEARNING OBJECTIVESA fter reading this chapter, you should be able to: Understand the nature of full cost (FC) and successful efforts (SE) ACCOUNTING . Grasp the background and politics of standard setting for oil andgas ACCOUNTING . Understand the SEC s reserve recognition ACCOUNTING (RRA) pro-posal. Understand SFAS No. 69 and its relationship to and gas ACCOUNTING is an interesting though specialized area,one that demonstrates many theoretical problems of the typediscussed in this book. Standard setting in this area has beenthe subject of controversy for nearly two decades. Moreover, several ofthe decisions rendered by standard-setting agencies have been ex-tremely dubious. From a theoretical point of view, financial accountingand reporting in the oil and gas industry illustrates very well a situationin which information produced by the historical cost model generally isconsidered to be much less relevant for decision makers than infor-mation produced by some form of current valuation.

use SE, while the smaller, less integrated enterprises use FC. In using FC, the larger enterprises, simply because of their size and the extent of their operations, would receive a relatively smaller smoothing impact than the smaller enterprises. A 1973 survey of approximately 300 enter-prises found that nearly one-half used FC.6 However, a ...

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  Accounting, Smaller, Oil and gas accounting

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