Oil and Gas

OIL AND GAS ACCOUNTING: CRITICAL EXAMINATION OF THE practise OF THEORY TO PRACTICE IN NIGERIA 1.0INTRODUCTION: The natural resources of a demesne, particularly the minerals, often constitute the lions share of the nations wealth. This is particularly true of the OPEC nations including Nigeria. Prior to the development of invoice standards issued by the Nigerian Accounting Standards Board (NASB), the financial call downdings published by the oil and foul up industry in Nigeria did not endorse adequate information about the investments held by the reporting enterprises. Also, there was a problem of incomparability of financial statement. This gave rise to the development of accounting standard to guide the preparation and presentation of the financial statement so as to provide a guide on accounting rules, procedures, and reporting formats to be followed by companies operating in the petroleum industry in Nigeria. Petroleum operation is shared into two broad areas namely upstream and downstream activities. 1.1 upstream ACTIVITIES: Upstream activities involve the acquisition of mineral interest in properties, exploration (including prospecting) and development of crude oil and gas. 1.

2 DOWNSTREAM ACTIVITIES This involves such activities as transporting, refining and marketing of oil, gas and its derivatives. 2.0THEORITICAL FRAMEWORK In a bid to harmonize the financial statement in the oil and gas industry, and to prepare financial statements that meet the information needs of the non-homogeneous users, various regulations were issued, such as, Petroleum interpret (PA) of 1969, Companies and Allied Matters Act 1990 (CAMA as Amended), Petroleum Profit Tax Act (PPTA) 1959. This was backdated to bespeak effect January1, 1958. The Memorandum of Understanding (MOU) which came effect in 1986. pedagogy of accounting standards 14 which deals with Accounting for petroleum in the Upstream, SAS 17 which deals with accounting for petroleum in the Downstream, SAS 1 which... If you want to limit a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.