OIL AND GAS RESERVES REPORTING PRACTICES AND THE IMPLICATIONS OF SFAS 157

Document Sample
OIL AND GAS RESERVES REPORTING PRACTICES AND THE IMPLICATIONS OF SFAS 157 Powered By Docstoc
					OIL AND GAS RESERVES REP
				
DOCUMENT INFO
Description: In late 2006, the FASB issued SFAS 157 which provides detailed guidelines on fair-value measurements. The statement defines the fair-value concept, discusses the application of different measurement alternatives, and develops a hierarchy of measures to be used based on the reliability of inputs. In January 2008, the SEC issued a concept release seeking comments on possible revisions of oil and gas reserves disclosure requirements. The International Accounting Standards Board (IASB) initiated a project in July 2007 to develop a comprehensive accounting standard for the extractive industries. One of the central aims of the IASB project is to consider the use of fair-value measures, using SFAS 157 guidelines as one alternative (IASB, Agenda Paper 4C). As part of their assessment of the appropriate fair-value estimation techniques adapted from the approaches provided in SFAS 157, the IASB reached a conclusion that the "income approach" would be the most suitable for estimating the fair-value of oil and gas reserves . The IASB identifies two important factors to be considered in selecting the price to be classified as a level one input according to the guidelines of SFAS 157. First, the price used needs to reflect the amount that would be realized when the oil or gas is produced and becomes ready for sale. Second, there needs to be a clear determination of the effects of the quality and location of the oil and gas produced. The IASB identifies two important factors to be considered in selecting the price to be classified as a level one input according to the guidelines of SFAS 157. First, the price used needs to reflect the amount that would be realized when the oil or gas is produced and becomes ready for sale. Second, there needs to be a clear determination of the effects of the quality and location of the oil and gas produced.
BUY THIS DOCUMENT NOW PRICE: $6.95 100% MONEY BACK GUARANTEED
PARTNER ProQuest LLC
ProQuest creates specialized information resources and technologies that propel successful research, discovery, and lifelong learning.