Exposure Draft of the Guidance Note on Accounting for Oil and Gas Producing Activities (for entities to whom Ind AS is applicable) (Comments to be received by August 31, 2016) – (02-08-2016)
As the era of Indian Accounting Standards, i.e., Ind AS has already started, the Institute of Chartered Accountants of India (ICAI) has taken steps to revise the Guidance note in accordance with Ind AS. Accordingly, an exposure draft on Guidance on Accounting for Oil and Gas Activities (“the Document”) for those companies which are required to comply with Ind AS has been issued. The Document provides guidance on treatment of costs incurred on purchase of mineral interests in properties, exploration, development and production of oil and gas activities.
The document provides guidance on following key accounting aspects:
(i) Classification of oil & gas activities and related costs;
(ii) Accounting for acquisition, exploration & evaluation, development, production and abandonment costs;
(iii) Accounting for depreciation;
(iv) Capitalisation of borrowing costs;
(v) Impairment of assets, like Exploration and evaluation assets, Development and production costs;
(vi) Accounting for Interests in Joint Ventures for Oil and Gas Activities;
(vii) Information required to be presented and disclosed in the financial statements.
The Exposure Draft is open for comments till August 31, 2016.
Complete Exposure Draft can be accessed here.