Oil And Gas Accounting Research

The production of oil and gas, which closely connected with the sustained, steady and healthy development of a national economy, is the lifeline of economic development. What we should care is that how to utilize those natural resources properly in order to make them serve for human being. How to do accurate accounting transaction on the oil and gas's mining, exploitation and transportation is quite important, to which accountants must pay great attention. With the development of global economic integration and further cooperation with other countries, how to settle those accounting problems existed in cooperated projects is extremely important because of its special peculiarity on oil and gas production.This thesis consists of several points as following. In the first part, it analyzes the background and present condition of research on oil and gas accounting, and brings forward the problem that existed in the research on oil and gas accounting. Moreover it compares the accounting standards between china and international, and makes the conclusion that oil and gas accounting standards basically achieves the international convergence. In the second part, it researched and summarized the foundation of the theory on oil and gas accounting. This part mainly introduces the boundary of oil and gas assets and the foundation of the theory on oil and gas assets. There are three accounting methods in oil and gas assets transaction: Successful Efforts method, Full Cost method and Reserve Recognition Accounting method. After compare and analysis we comes a conclusion that Successful Efforts method is more preferable to the Chinese condition. The third part investigates the problems existed in accounting transaction on oil and gas and makes some suggestions. This part analyzes three oil and gas accounting problem: oil and gas reserves capitalization, asset retirement cost and oil and gas asset depreciation. On the basis of the development direction of accounting standards, the fourth part made five proposals about modification of accounting standards: strengthen the research on the theory of oil and gas accounting, add explanation of basic term, perfect the request of record exposure, definitely prescribe the devaluate of oil and gas asset, and increase the accounting transaction relate to overseas item.