MFI-52 Catastrophe-Related Costs

This document provides guidance as to how the industry may handle accounting issues associated with the catastrophic losses produced by massive hurricanes and other natural disasters. The principles of the document are applicable to any kind of catastrophe, both onshore and offshore.  Notable cost topics include humanitarian relief such as food, clothing, and lodging to employees, their families and the general population as well as costs to reserve labor, equipment, transportation, hotel rooms and other services needed to help prepare before a catastrophe occurs. It also discusses how to handle costs for employees who are placed on stand-by status or unable to return to their normal work locations due to damage caused by a catastrophe.  51 pages.  2007

 

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Description

Table of Contents

  1. INTRODUCTION
  2. BACKGROUND
  3. CATASTROPHE-RELATED COSTS
    1. Evacuation Costs
    2. Command Centers and Emergency Response Teams
    3. EmergencyPreparedness, Standby, Stabilization and Restoration Costs
    4. Emergency Environmental/Ecological Clean-Up Costs
    5. Labor Costs
    6. Alternate Support Facilities
    7. Humanitarian Relief Costs
    8. Insurance Reimbursements
    9. Fuel Costs
  4. CATASTROPHE ACCOUNTING
    1. Joint Interest Billings and Payments
    2. Destroyed Records
    3. Audits
    4. Adjustments
    5. Overhead
    6. Cost Allocations
  5. GLOSSARY
  6. APPENDIXES
    1. Joint Operating Agreement – Force Majeure Provisions
    2. Force Majeure Procedures
    3. Joint Operating Agreement – Expenditure Provisions
    4. Accounting Procedure – Ecological and Environmental
    5. Accounting Procedure – Labor/Field Employees
    6. Accounting Procedure – Labor/Personal Expenses
    7. Accounting Procedure – Indirect Charges/Overhead
    8. Accounting Procedure – Other Expenditures
    9. Accounting Procedure – Contract Services
    10. Accounting Procedure – Equipment and Facilities Furnished By Operator
    11. Accounting Procedure – Expenditure Audits
    12. Accounting Procedure – Catastrophe Overhead