Cash Call in Joint Venture Accounting in Oil and Gas Industry

Course Details:
The fundamental objectives of Cash Call in Joint Venture Accounting in Oil and Gas Industry Course is to help trainees in:
• Understanding the JVs in action in Oil and Gas industry
• Knowing the nature and structure of JVs and how to apply JVs in the real-life
• Methodologies of JVs in Oil and Gas industry
• Understanding and applying the tools and techniques of JV accounting
• Developing the understanding of the issues of the JV accounting
• Eradicating the issues to gain the joint interest
• Understanding the different methods of accounting of the JVs
• Creating strategies as per advanced needs of the industry to get desired output
• IFRS reporting and required accounting skills for its costs
• Understanding accounting principles of the JV agreements in Oil and Gas Industry
• Comprehension of clauses of each type of JV agreement
Course Content
Overview of Accounting in the Oil and Gas (O&G) Industry
• Features of the O&G industry and companies
• Accounting and its relatedness to the O&G industry
• The principles of IFRS
• The principles of US GAAP
• Why choose JV agreements?
• The impacts of volatility environment
• Regulatory environment impacts
Introduction to Joint Ventures in the Oil and Gas (O&G) industry
• Explanation and introduction of Joint Ventures
• Structure of JV
• Features and characteristics of JVs
• Pros and cons of JVs
• JVs’ roles in the O&G industry
• JV agreements provisions
Types of JVs O&G
• Four types of JV agreements
• Undivided interests
• Limited partnership
• Corporate JVs
• Limited Liability companies
• Differences between JV and partnership
• Non-operators and operators
Accounting concepts
• Account concept (General)
• The money measurement concept
• The dual aspect
• Consistency idea
• The accounting periods
• The entity idea
• Conservatism
• The concept of cost
• Realization concept
• Matching Idea
Accounting methods in the O&G industry
• Methods (equity and proportionate consolidation)
• Tax treatment accounting (Involvement level, undivided interests, formation, accounting maintenance, and substantial and economic allocation effect)
• Legal framework selection
• Alternative methods
Accounting methodologies in the O&G industry
• Methodologies of cash calls
• Development expenditures
• Costs borrowing
Application of JV accounting in real-life
• Audits
• Budgets
• Approvals
• Contributed property and accounting
• Relatedness of under lifting and over lifting to recognition of revenue
• Operators’ responsibility and duties for providing timely information
• Billing statement of cash calls
Significant problems and issues of accounting in JV agreements
• JV operational problems related to accounting
• Issues of cash call methodologies
• Issues of revenue recognition
• Issues of inventory valuation
• Issues of cost management and controls
Solutions to problems and issues of accounting in JV agreements
• IFRS
• De-recognition and controlling of assets
• Authorization and budgeting for expenses
• IAS 28 investments
Standardised organizations of accounting and finance in JVs
• Accounting Standards Board (ASB)
• The FASB
• The IASCF
• The SEC
• The IASC

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 11th – 14th Feb, 2025
2ND BATCH: 15th – 18th July, 2025