Study On Accounting Problem Of Petrol And Natural Gas

Petroleum and natural gas play an important role in the national security of economy. The policy of P&G (petroleum and natural gas) trade, connected with the sustained, steady and healthy development of a national economy, is the lifeline of economic development. Considering the particularity of P&G industry, setting the preferable Chinese P&G accounting standards is becoming more and more necessary. Specifically, how to measure and disclose the P&G assets is one of the accounting puzzles.Western countries have already had many theoretical and practical researches on accounting theory and many rules and regulations have been made. But in China the study on this subject is just underway and has produced several fruits such as Accounting Standard for Business Enterprises–Extraction of petroleum and natural gas (Consultative Draft) dated July, 2005,and Accounting Standard for Business Enterprises No. 27 - Extraction of petroleum and natural gas announced by Financial Institutes on 15th,Februray,2006.This thesis discusses several issues as follows: the setting of P&G accounting standards in China by normative method. Specifically, what we can learn from the U.S. active petroleum & gas accounting standards. From the late accounting standard, we can see some evidences of'learning'- Successful efforts and unit-of-production depreciation. But the application of these methods is not enough. In addition, setting new accounting standards is not only connected with the combining of trade peculiarity and accounting technology, but also considering politics. Then, how to see the accounting standards announced lately? And how to make improvement in research of Chinese accounting standards is discussed in the thesis.