IFRSs took a significant step forward in 2005 with the first wave of countries adopting the standards, and after three years of wide experience, now seems an opportune time to take stock of how oil and gas companies around the world are applying IFRSs in practice. The survey highlights areas in which IFRSs have been applied with reasonable consistency by the industry; it also highlights areas in which nuances of companies’ previous GAAPs have been carried through to their IFRS accounting policies and disclosures. While some of these nuances manifest themselves in the use of different terminology and minor differences of accounting, others highlight the need to read the financial statements closely when the objective is to make accurate comparisons between companies in the sector.
We believe that you will find this publication useful in assessing the type of information being disclosed in practice, and the formats and methods of disclosure. Each section is accompanied by survey results and a high level summary focussing on oil and gas specific issues. A summary of the main differences between U.S. GAAP and IFRSs also is included.