Current Economic Impact on Oil and Gas Industry Accounting and Financial Reporting

In early March 2020, crude oil prices declined significantly in response to disruptions in worldwide oil demand due to the economic impacts of COVID-19 and an oversupply in the market. Market uncertainties have also impacted natural gas prices and demand. These trends, including a potential economic downturn, could have an adverse and material impact to […]

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Successful Efforts vs Full Cost Accounting: An Introduction

Oil and gas exploration companies in the oil and gas industry have two choices in accounting for exploration and development costs.   Successful efforts accounting is a method which writes off expenses associated with exploration, including unsuccessful wells.   Full cost accounting is a method that capitalizes the exploration costs and drilling of wells, regardless of the […]

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