The course will cover advanced topics in energy accounting. Topics include joint interest audits, contractor audits, asset valuations, direct charges, carried interests, farm outs/ farm-ins, transportation and refining, gas balancing, sub chapter K elections, tax credits, and reclamation costs.
Course Credits: 3
Prerequisites: ACCT 6301
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 & 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, and 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, and prepare the required SEC disclosures for an oil and gas company.