Oil and Gas

OIL AND GAS ACCOUNTING: CRITICAL EXAMINATION OF THE application OF THEORY TO PRACTICE IN NIGERIA 1.0INTRODUCTION: The natural resources of a soil, 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 story standards issued by the Nigerian Accounting Standards Board (NASB), the financial contestations published by the oil and burn out industry in Nigeria did not fail word adequate information about the investments held by the reporting enterprises. Also, thither 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 divide 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 ask over to harmonize the financial statement in the oil and gas industry, and to prepare financial statements that meet the information needs of the confused users, various regulations were issued, such as, Petroleum symbolise (PA) of 1969, Companies and Allied Matters Act 1990 (CAMA as Amended), Petroleum Profit Tax Act (PPTA) 1959. This was backdated to channelise effect January1, 1958. The Memorandum of Understanding (MOU) which came effect in 1986. mastery 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 get a full essay, order it on our website: Ordercustompaper.com

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