IFRS For Oil And Gas

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For Oil And Gas

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Including new exposure drafts on lease accounting, revenue recognition, hedge accounting, along with IFRS 10, 11, 12, 13 and discussion paper of “Extractive Industries”

11 – 14 November 2013 • Hyatt Regency Hotel, Dubai, UAE This course will help: •

Understand the impact of IFRS on various items of financial statements by offering detailed practical examples relevant to the oil and gas industry

•

Assess the impact of exposure draft on lease accounting, revenue recognition, hedge accounting, IFRS 9, 10, 11, 12 , and 13 on your financial statements

•

Identify the accounting policies best suited to your company

•

Review disclosure requirements with practical insight into real life disclosures

www.iirme.com/IFRSforOilandGas Organised by:

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IFRS For Oil And Gas 11 – 14 November 2013 • Hyatt Regency Hotel, Dubai, UAE Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 every day and finish at 14:30.There will be breaks for refreshments at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Day One

Course Overview With the advent of IFRS, it has become critical to understand the impact of various provisions of IFRS on accounting reports of companies in the oil and gas sector. There are few other industries which are as complex, competitive, and entwined with the economy as the oil and gas.

This course will take you through, in detail, various policy and implementation issues involving typical transactions in oil and gas sector and how IFRS affects them. Much beyond a generic course on IFRS, this sector specific course introduces you to issues which are typical to the sector and are not covered in a generic course.

The scope of the course is wide – encompassing issues involving fixed assets, leases, inventories, financial instruments, etc. It also includes the impact of latest IFRS releases IFRS 10, 11, 12, and 13 in addition to discussion paper on extractive industries. The course will cover recent exposure drafts on lease accounting, revenue recognition, and hedge accounting.

Designed and delivered by authors of a bestselling book on IFRS, whose training are well acclaimed and widely appreciated. This course brings to you a unique opportunity to be exposed to a rare combination of understanding and practice wherein the knowledge you acquire will find immediate application in your work place. It includes a special section on issues involving first time transition and selection of accounting policies and disclosures.

About Your CPE Credits 1) Upon completion of this course you may earn maximum 24 CPE credits (Finance 18, Management Advisory Services 6).

2) Prerequisite to attend: Practical understanding of financial analysis fundamentals.

3) Course level: Intermediate.

4) Instructional method: Group live.

5) Advanced preparation: Review of existing IFRS. South Asian Management Technologies Foundation is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org

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• Overview of the major oil and gas industry issues: Understand the major impact of IFRS on the oil and gas sector and assess how they affect your company • Exploration and evaluation assets (IFRS 6): Go through in detail the specific standard concerning extractive industries - Initial recognition - Subsequent measurement - Reclassification - Side-tracks and suspended wells • Development and production activities (IAS 16, IAS 37): Gain an inner understanding involving asset accounting including the resultant adjustment through reserves - Treatment of development expenditure - Recognition of assets - Component accounting - Depletion, depreciation and amortisation - Decommissioning and environmental provisions - Reserves estimation and accounting • Impairment of non-financial assets (IAS 36): Understand the impact of erosion in value of non-financial asset and its impact on, quality of, balance sheet - Determination of CGU - Impairment of goodwill - Reversals

Day Two • Leases (IAS 17, including Exposure Draft): Take a closer view on the popular alternative asset funding process and see how lease accounting affects your balance sheet and profit statements - Financing leases - Operating leases - Learn about the proposed lease accounting amendments including Type A and Type B lease.

• Intangible assets (IAS 38): Licenses, permits, etc. are critical components of the oil and gas industry. See in detail how they are to be accounted for and managed - Accounting for licenses, concessions and permits • Inventory (IAS 2): Not every industry can match the complications of inventory management that oil and gas industry brings forth. This session will offer a deep understanding of differential accounting treatment of various kinds of inventories that the industry carries and visualise their impact on financial statements - Producers inventories - Broker-dealer inventories - Line fill and cushion gas - Spares • Financial instruments (IAS 32, 39, IFRS 7 & IFRS 9): In a need to manage multi-currency, multi-period transactions – the oil and gas industry extensively uses financial instruments and often their expertise in managing it may be the differential reason behind a sub-optimal financial result.

This section takes you through, in detail, the various types on financial instruments used and their impact on financial statement

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Recognition and measurement Hedge accounting including the new exposure draft Embedded derivatives Disclosure requirements

Day Three • Revenue Recognition (IAS 18) including exposure draft: Deciding on the time when revenue is to be recognised is another complex question that the oil and gas industry constantly struggles with. Review of this standard, supplemented by sector specific issues, will allow you to design the revenue recognition policy that best suits you - Timing - Overlift and under lift - Physical exchange of products • Emission rights and trading: Evaluate the possible accounting alternatives arising out of withdrawal of IFRIC 3 • Segmental reporting (IFRS 8): Review the working details of segment reporting with special focus on segmentation from business and geographical focus - Primary segmentation - Secondary segmentation • Group reporting (IFRS 3, 10, 11, 12, IAS 27, 28, 31): Oil and gas companies are generally group entities requiring consolidation of accounts at the apex level. This section will focus on operational issues involving consolidation for different kinds of group relations - Business combinations - Strategic investments - Joint working arrangement - Implications of new IFRS 10,11 and 12 - Farm-in and farm-outs - Production sharing agreements • Functional and presentation currency (IAS 21): How the books are to be presented and transactions measured - Determination of functional currency - Presentation currency conversion principles - Change in functional currency • Fair value measurement (IFRS 13): Fair value is a central theme of IFRS and this section will introduce you to the principles and methodologies involved in fair value measurement - Fair value hierarchy - Fair value principles - Disclosure requirements

Day Four • Accounting policies and disclosures: Select the accounting policies from various alternatives that are most appropriate for your company. Also get introduced to the disclosure requirements for various objects of report on the financial statements - Exploration and evaluation - Depreciation, depletion and amortisation - Estimation of reserves - Impairment - Decommissioning obligation - Financial instruments and derivatives - Revenue recognition - Royalty and taxes - Emission trading schemes - Joint ventures - Business combinations and goodwill - Functional currency

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• First time transition Issues (IFRS 1): Acquire an overview of issues that are involved during first time transition to IFRS with special emphasis on extracting relevant data from the existing accounting system - Deemed cost - Componentisation - Decommissioning provision - Functional currency - Assets and liabilities of subsidiaries, associates and joint ventures - Disclosure requirements • Future Accounting Issues: Foresee the impact of future changes that would be critical for the sector - IASB discussion paper on “extractive industry”

Meet Your Expert Course Leaders Prof. Arif Ahmed is a Chartered Accountant and MBA (Finance) and has more than 23 years of experience under his belt in the area of finance and risk management.

In addition to training, Prof. Ahmed has assisted many organisations to design and implement financial management and control systems across various industries including media, metals and minerals, logistics, banking, engineering, energy, hospitality, paper, etc. He is one of the most sought after speakers for his inimitable style of blending concepts with application in industry.

Prof. Ahmed is the Director of South Asian Management Technologies Foundation based in India.

Prof. Veena Hingarh is a Chartered Accountant, Company Secretary, and a Certified Information System Auditor. A career rank-holder Prof. Veena focuses on the areas of finance and their interface with information technology as her specialisation. Delegates gain from her insight into the working of finance and its integration with IT. Prof. Veena is the Joint Director of South Asian Management Technologies Foundation, India.

Prof. Arif and Prof. Veena are contributors to and coauthors of best selling books - Wiley International Trends in Financial Reporting, Understanding And Conducting Information Systems Audit, Handbook on IFRS, Manual of Information Systems Audit, etc.

They have also been consultants with the World Bank.

Would you like to run this course in-house?

The in-house training division of IIR Middle East Tel: +971 4 407 2624 • Email: CTS@iirme.com www.iirme.com/cts

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IFRS For Oil And Gas 11 – 14 November 2013 • Hyatt Regency Hotel, Dubai, UAE FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 9428 Dubai, UAE

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DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – +971 4 335 2483 E-MAIL – a.watts@iirme.com WEB BC4968 Event

Course Fee Before 26 August 2013

Course Fee Before 16 September 2013

Final Fee

US$ 3,895

US$ 4,395

US$ 4,695

IFRS For Oil And Gas 11 – 14 November 2013

WOULD YOU LIKE TO RUN THIS COURSE INͳHOUSE?

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions will receive a Certificate of Attendance.

Any complaints, grievances or suggestion regarding CPE credit may be addressed to email: grievance@south-asian.org.

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Payments A confirmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event. You can pay by company cheques or bankers draft in Dirhams or US$. Please note that all US$ cheques and drafts should be drawn on a New York bank and an extra amount of US$ 6 per payment should be added to cover bank clearing charges. In any event payment must be received not later than 48 hours before the Event. Entry to the Event may be refused if payment in full is not received.

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Cancellation If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge.

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Event Venue: Hyatt Regency Hotel, Dubai, UAE Tel: + 971 4 209 1234 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971 4 407 2693 Fax: +971 4 407 2517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

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