Canadian public upstream oil and gas companies face a challenging transition to International Financial Reporting Standards (IFRS) as they significantly change their current accounting policies and perhaps their business practices.
Companies need to be actively engaged in preparation for implementation of IFRS and the priority is immediate.
Traditionally oil and gas accounting for exploration and development costs used either the "full cost" or "successful efforts" accounting method. With the adoption of IFRS, full cost oil and gas companies will be expected, for the most part, to abandon or significantly change their current accounting policies.
The Canadian Association of Petroleum Producers (CAPP) and the Small Explorers and Producers Association of Canada (SEPAC), along with input from industry work groups, have produced an Information Guide on IFRS conversion for the Canadian upstream petroleum industry. This new IFRS Guide has been developed for CEOs, CFOs, VP Finances, Controllers, and their staff, directly involved in the preparation and dissemination of a company's quarterly financial statements and annual reports.
Electronic copies of this publication are available at no charge to download or view.