ACCT4310 Oil and Gas Accounting

Course Description

Accounting and taxation principles and procedures for the petroleum industry. Topics include exploration, leasing, drilling and production problems.

Course Credits: 3

PrerequisitesACCT 3301 or ACCT 3310

Student Learning Outcomes

A basic knowledge of the petroleum industry for the purpose of understanding terminology and processes used in accounting for oil & gas.

An understanding of the accounting for oil & gas as it applies to reporting to investors and external users.

A basic knowledge of the income tax rules as they apply specifically to the oil & gas industry.

Module 1: To have a general overview of the Oil and Gas industry to include: geology, oil exploration, drilling operations, production, refining and transportation.

Module 2: Students will be able to make accounting entries for a successful efforts company including: geological and geophysical costs, property acquisition costs, exploratory drilling costs, developmental costs and cost disposition. Students will also be able to differentiate which costs should be capitalized and which should be expensed.

Module 3: Students will be able to make accounting entries for; a full cost company, production activities, revenue from oil and gas sales, joint interest activities. Students will also be able to perform basic tax calculations.

Module 4: Students will be able to: use industry terms relating to conveyances, identify differences in accounting for international operations, do a financial analysis of an oil and gas company, prepare the required SEC disclosures for an oil and gas company.