IFRS Transitioning for Oil & Gas

Transcription

1 Stransact Partners, a transactions and tax services firm renowned for its knowledge brokerage events on business, management, tax, finance and accounting is pleased to announce her IFRS Transitioning for Oil & Gas 7th - 10th December 2010, Golden Tulip Hotel, Accra, Ghana. On completion of this 4-day course you will: Understand IFRS financial statement requirements Understand the differences between SAS and IFRS and the adjustments you will need to make to transit to IFRS Apply the requirements of IFRS 1 Comply with the rules relating to first-time adoption of IFRS Understand IFRS pronouncement in specific subject areas: Property, Plant and Equipment (PPE) Intangibles Accounting for exploration and development activities Oil and gas reserves Impairment reviews and fair value accounting Provisions Joint venture and production sharing agreements Financial instruments and application of hedge accounting treatments The sessions will be interactive and offer networking opportunities to share experiences with others in the industry Register by 10th November 2010 and get a 10% early bird discount! *Free Excel Cl a ss*

2 Course Overview IFRS transitioning for oil & gas Nigeria recently announced its formal adoption of IFRS. Every company needs to get ready and be informed about the impending change. The commercial and operational practices of the oil and gas industry pose unique challenges to accountants and more so to those that will be implementing IFRS for the first time. These challenges include but is not limited to accounting for exploration and pre production development activities, joint venture arrangements and production sharing agreements, decommissioning (abandonment) costs, use of hedge accounting and the disclosure of reserves information. While Nigerian Statements of Accounting Standards (SAS) has devoted certain SAS to the oil & gas industry, IFRS has no such specific standards. In most instances, accounting treatment has to be inferred by interpreting the relevant Standards. This workshop will focus on the areas of most concern to the Nigerian oil and gas industry. We will consider the best principles to adopt under the principle based accounting approach of IFRS when setting accounting policies in the absence of specific guidance within IFRS. How will this event help you? A team of expert consultants and industry practitioners will offer their advice and tips on the best practice throughout the days of the programme. You will be given the opportunity to benefit from the collective experience of the class through lectures, interactive exercises, case studies and intensive question & answer sessions. Who should attend: Auditors Accountants Financial Analysts Credit / Investment Analysts IFRS Transition Team Members All those with reporting functions TRAINING ON IFRS TRANSITIONG FOR OIL & GAS ACCRA, GHANA. 7th - 10th December, 2010 (includes residential option) This event will hold at the serene Golden Tulip Hotel, Accra, Ghana. Golden Tulip Hotel Accra, Ghana is tranquil and peaceful. The hotel is a first class African style business hotel which provides an atmosphere for maximum relaxation and assimilation. The hotel is set in spacious grounds with surrounding tropical gardens, and is centrally located in the developing business district of Accra. AGENDA Day 1 Tuesday 7th December Registration Opening Speech Mrs Cecilla Nyann, President Institute of Chartered Accountants, Ghana Overview of Oil and Gas accounting issues Nature of oil and gas entities and commercial arrangements Joint Ventures and production sharing agreements Accounting for reserves Decommissioning and restoration provisions Use of hedge accounting Comparison of traditional full cost and successful accounting methods Introduction to IFRS What IFRS is and why it was introduced An outline of its primary objectives The main bodies responsible for IFRS The current state of play (details about Countries that have adopted IFRS) The advantages and risks of adopting IFRS In general For the company Impact of adopting IFRS: On management On investors On auditors On accounting staff On systems and processes Future outlook Our Faculty Mimi L. Alciatore Director, Accounting Certificate in Energy Graduate Program Associate Professor, Department of Accountancy University of Houston Mimi has taught more than 1600 managers in various executive education courses on such topics as oil and gas accounting, general financial reporting and disclosure, and financial statement analysis. Her research activities center on financial markets, with a focus on accounting and financial reporting issues for the energy industry. Professor Alciatore is the author of Oil and Gas Accounting in the Encyclopaedia of Management, and Asset Valuation: Case Studies from the Oil and Gas Industry in the Financial Times. She is a member of Financial Executives International, the American Accounting Association, the Women s Energy Network, and is on the editorial boards of Petroleum Accounting and Financial Management Journal and the Oil, Gas & Energy Quarterly. Dr. Alciatore was on the faculty at Louisiana State University, Southern Methodist University in Dallas, and at the London Business School in London, England. Kike Balogun Formerly Senior Manager, Assurance Services PwC Kike is an Associate Chartered Accountant with about 14 years experience. Kike began her career with Pricewaterhouse (PW) as an Audit Assistant and rose to Senior Manager, Assurance Services in the enlarged PricewaterhouseCoopers in During her spell in PwC, she had several postings over various functions including a one year spell with PwC London in Kike currently works with a multinational Oil & Gas company.

3 Key differences between Nigerian SAS and IFRS-A Lunch An outline of significant differences Comparative analysis of SAS 1to 30 and IFRS 1 to 9 and IAS 1 to 41 (Summary) Key differences between Nigerian SAS and IFRS-B An outline of significant differences Comparative analysis of SAS 1to 30 and IFRS 1 to 9 and IAS 1 to 41 (Summary) SAS 14 :Upstream Activities SAS 17: Downstream Activities FAS 143: Asset Retirement Obligation Case Study Welcome Reception & Cocktail at The Terrace, Golden Tulip Accra, Ghana Day 2 Wednesday 8th December General Principles of IFRS 1 First-Time Adoption of International Financial Reporting Standards Adjustments required to move to IFRS for E&P Coys Reclassifications Measurement Recognition Opening IFRS balance sheet Changes to disclosures Accounting for fixed assets under IFRS Property, Plant & Equipment (IAS 16) Depreciation of production and downstream assets Impairment Leases and Intangible Assets (IAS 4, 17 & 38) Decommissioning Obligation Borrowing Costs Prospecting to evaluation Lunch Review of IFRS 6, (exploration and evaluation of mineral resources) and its impact on traditional full cost and successful efforts accounting methods Reclassification out of E & E under IFRS 6 Impairment of E & E Assets IAS 36 and CGUs during E& E Borrowing Costs Case Study on Choice of Accounting Policy Development spend Production End of Day 2 Accounting for dry holes Recognition, measurement and classification of development spend under IFRS Application of the impairment standards Limitation of IAS 36 & IFRS 6 during development Reserves & Resources Depreciation of production & downstream assets: Units of production (UOP) Depletion, depreciation & amortization Depreciation of Components" Morten Foght, MBA, MSc. (Finance & Accounting) Chief Consultant Maze Advisors Morten has been CFO of several companies in Europe for the last decade. He was CFO at Emperion (Telecommunications industry), Klipsch Group Europe (Consumer Electronics Industry) and at the Public companies; Zenitel (Telecommunications Industry) and Hampel (Chemical Industry) all in Europe. He also had several top level finance experience in several companies in the Nordic Countries and Africa before founding Maze Advisors. His education include: MBA from Henley Management College, UK, MSc. Finance and Accounting from Copenhagen Business School. Systems and Processes are his forte. Oluyemi Abaolu Johnson Managing Partner, Abaolu Johnson & Company: Oluyemi Johnson is an astute accountant and consultant who trained with PricewaterhouseCoopers and Deloitte and had hands on experience with Sarbanes Oxley engagements, business risk assessment, process improvement, compliance audits, financial audits, process audits, finance, financial and business modelling, etc where he assisted very many multinational companies with their processes. He has worked with AP Moller Maersk Nigeria, Access Bank Plc, and Diageo Plc and now practices as a Chartered Accountant. His audit portfolio is focussed on oil & gas companies. He has broad exposure to Standards - GAAPs (US FAS, IAS, IFRS and Nigeria's SAS), and other tools like ISA, IIA's Performance and Attribute Standards, COSO Control Framework, etc. Daniel Robert (ACA, Msc) Daniel trained with KPMG Professional Services between year 2000 and 2005 where he rose to the position of an Experience Senior in the Audit and Assurance unit. He subsequently worked with several indigenous upstream oil and gas companies including Sahara Energy Field Limited as Finance Manager. He is currently the Project Accountant for a multinational oil & gas company in respect of some of their producing assets. He holds a MSc in Oil and Gas Accounting (Distinction; best graduating Masters Student 2009) from Glasgow Caledonian University UK, and BSc. in Accounting from the University of Abuja Nigeria.

4 Day 3 Thursday 9th December Product Valuation & Other Production Issues Accounting for linefill Impairment of production & downstream assets Impairment indicators Determining net realizable value for all inventories Cash Generation Units (CGU) Value In Use (VIU) Reserves & Resource Disclosure Requirements FAS 69 & IFRS Decommissioning Obligation Financial Instruments (IAS 32, IAS 39 & IFRS 7) Lunch Scope of IAS 39 Application of own use Measurements of long term contracts Embedded derivatives Foreign currency transactions Hedging commodity and currency risks Revenue Recognition Issues IAS 18 Revenue Overlift and underlift Accounting for taxes Petroleum taxes & IAS 12 Taxes in PSAs Tax paid in Cash or Kind Tax Paid on behalf (POB) Investment in Associates and in Jvs End of Day 3 IAS 28 & 31 PSAs & Concessions Review & Costs of PSAs and Concession JVs Day 4 Friday 10th December Investment in Associates and in JVs Joint Control Accounts for Jointly Controlled Assets Contributions to Jvs Investments with less Joint Control Accounting within the JV Overview of managing the IFRS Transitioning Best practices Planning the project Involving the whole business Staff training Implementing the charges Collecting the data Operating parallel reporting systems Details of support and publications available internally and externally (Free resources from the big four (4) audit firms ) Closing Remarks / End of Session Lunch Free Afternoon/Optional Class: * Advanced Excel for Accountants Final course dinner at Seaside Grill Restaurant Africa Royal Beach, Accra. Eben Akinyemi, ACA Programme Director Partner, Stransact Partners Eben Akinyemi has provided accounting, tax and strategic advisory Services to some of the biggest brands in Nigeria since 2001 when he joined the defunct Accounting Firm, Arthur Andersen. He subsequently worked with KPMG Professional Services the successor Firm to Andersen in Nigeria and PricewaterhouseCoopers (PwC). He left PwC in February 2009 following his appointment as a Partner at Stransact Partners (formerly, Tax Ideas, a WTS member firm). Eben is multi-skilled and has experience across many industries providing services in Strategic Financial Advisory, Human Resources Advisory and Tax Advisory and Compliance. Eben's education includes a first degree from Ahmadu Bello University Zaria, and Associate Membership of the Institute of Chartered Accountants of Nigeria (ICAN). Eben has attended numerous training programmes including executive education at the Harvard Business School Boston, Massachusetts.

5 REGISTRATION: 3 SIMPLE WAYS Return Registration Form: Please fill the attached registration form and upon receipt of your completed form, your booking would be confirmed. Participants are required to make full payment of fees prior to the event to secure their place. Also, participants are responsible for their personal expenses and accommodation. However, Stransact Partners can assist interested participants in booking the Golden Tulip Hotel, Accra at a discounted rate of $190 per night. Call: Titi: Deji: Eben: CANCELLATION POLICY You may cancel your registration 15 working days before the commencement of the course at no cost. Thereafter, any notification of cancellation or postponement received within 10 working days of the course will attract charges of 50% of the course fees. Cancellations received within 5 working days of the course attract charges of the entire course fees. All cancellations, postponements or substitutions must be received in writing, or post by the required date. Send an titi.owoeye@stransact.net deji.oriola@stransact.net masterclass@stransact.net Course Fees: N380,000 (Ex VAT) Fees include tuition, documentation, tea breaks, lunch, and two event dinners. Delegates are responsible for their own accommodation. 2 easy ways to register 1 2 masterclass@stransact.net Tel: An invoice will be sent upon receipt of registration from. Please note, payment must be received prior to course start. About Stransact Partners We are an independent transactions and advisory services firm peopled by Partners who have built their careers at the big accounting firms such as the defunct Andersen, KPMG, and PricewaterhouseCoopers. The firm has excellent experience in working on transformational corporate finance projects and in collaborating with multinational firms to deliver value in every transaction. Stransact offers superior services, constantly seeking to deliver value that exceeds its fees. Value is the watch word that guides every assignment we undertake. We assist our clients, to adopt best practices in Business Transactions, Tax, Accounting and Reporting Issues. We are your independent advisor partnering with you in every transaction to ensure that you realize the maximum value from every deal. For more information about Stransact Partners, please visit: Our Services Include: Transaction Services Advisory Services Tax Services

6 2 easy ways to register 1 2 masterclass@stransact.net Tel: IFRS Transitioning for Oil & Gas 7th -10th December 2010, Golden Tulip Hotel, Accra, Ghana Workshop Registration Form Name: Title Surname First Name Job Title: Organization: City: Contact Details: Complete Mailing Address: Work Phone: Fax: Home Phone: Mobile: Homepage: Accompanying Person(s) Name(s): Stransact Masterclass Invoice Oil & Gas Tax School VAT No: IKYV Amount Payable (N) Workshop Fees Per Participant 380,000 Please write your cheque in favour of Stransact Partners