Research On The Measurement For Oil And Gas Assets

The oil and gas profession is a fluid excavation profession which provides the strategic resources for the national economy; it mainly bases on the underground oil reserves and produces the non-renewable oil and gas resources. Its production process obtains: the oil gas exploration, obtain the prospecting power, oil-gas field development, oil gas mining and so on. As a result of the more special production process, the profession brings about its production management the high investment, the high risk, the long investment recycling, which has formed the oil gas profession particularity. At present, domestic accounting world focuses on the accounting question on producing activities in oil and gas industry. Specially now the question on initially counting the price of oil and gas assets is deeply discussed in domestic accounting world .However, regarding some questions on the measurement for oil and gas assets such as depreciation, impairment, alienation of oil and gas assets and so on, there are few researchers to deeply study them in China. The question on measurement for oil and gas assets is clearly different from the same question in other industry because of particularities of oil and gas industry. If we still conduct these problems under the" Enterprises Accounting System" and special accounting standards, it is inevitable to affect the usefulness of information provided by financial reports of oil and gas firms in decisions. Specially whether depreciation and impairment are taken and how much they are taken will result in significant effect on the financial condition of oil and gas firms due to the enormous amount involved by depreciation and impairment. It is highly necessary to specially research measurement for oil and gas assets, perfect its measurement methods, and improve the quality of financial statement information of oil and gas firms.This paper begins from how to define the oil and gas assets. Basing on the definition of oil and gas assets, this paper analyses all measurement of oil and gas assets and takes research on the dismantlement removal and restoration cost of oil and gas assets, then propose some advice on how to improve the measurement accounting standard of oil and gas profession in China. There are seven parts in this paper, namely the introduction, the research on the Methods of initial counting price of oil and gas assets, the research on the depreciation and impairment of oil and gas assets, the research on the dismantlement removal and restoration cost of oil and gas assets, the research on the report of oil and gas assets, the present situation and future improvement of measuring oil and gas assets in China and result.The innovative aspects in this article are: (1) in view of the characteristics of oil and gas assets, I put forward a new viewpoint on the Methods of initial counting price of oil and gas assets by using the fair value: the confirmation standard of assets impairment should be properly relaxed and oil and gas firms should be permitted to renew assets value in China; (2) systematically studied the question on the dismantlement removal and restoration cost of oil and gas assets.