OT02005 - Oil Industry Accounting

Attempts to Standardise Accounting Principles. IASB

In November 2000 the International Accounting Standards Board (IASB), which is charged with introducing common International Financial Reporting Standards (IFRS) to replace national standards, e.g. FRSs, FASs, SORPs, issued a discussion document on "Accounting by Mining and Oil and Gas Companies" in which it "favours adoption of a method of accounting more consistent with the successful efforts concept", i.e. to the possible exclusion of the "full cost" method. Thus, history has repeated itself, but it remains as yet to be seen if a future IFRS implements their favoured option.