By Andy Griffin, CPA, Supervisor
Recently Mike Eberhart (also of Hall Kistler) and I were asked to present a webinar entitled “Overview of Oil and Gas Accounting.” The webinar was part of a series of oil and gas webinars sponsored by Bisk CPEasy, now part of Thomson Reuters, a national continuing professional education provider.
As we discussed during the webinar, the two methods used in oil and gas accounting are (1) successful efforts and (2) full cost.
Accounting in the oil and gas industry requires an analysis of the various costs incurred by oil and gas companies in the process of acquiring and leasing properties and also the drilling of the oil and gas property and producing oil and gas from that property. The calculation of depletion and amortization also must be performed, as well as the calculation of potential impairment of oil and gas properties. It is also necessary to calculate asset retirement obligation liabilities.
These are all topics Mike and I spoke about at length during the webinar. If you have any questions about these issues (or any oil and gas related topic), give our team of accountants at Hall, Kistler & Company a call at 330-453-7633. We would love to meet with you and help work through them.
To learn more about the work Hall Kistler & Company does in the oil and gas industry, visit http://www.hallkistler.com/oil-and-gas