Study On The Production Method Of Depreciation For Oil And Gas Assets Basis On ZY Oilfield Company

The oil and gas industry is a special kind of profession characterized by high investment,long period and high risk.In the accountancy handle,typical accountancy criteria according with professional feature must be included.As the international accounting standards get to be unified,the government issued the latest Chinese accounting standards system,enterprise Accounting Standards No.27-oil and gas extraction and the NO.2 explanation to China's accounting standards especially.The depreciation method of the oil and gas companies is adjusted.According to the new standard,the assets are depreciated based on the oil production.Compared to the original Chinese accounting standards under which the oil gas assets are depreciated by the straight-line method,the oil gas assets depreciation method has changed a lot,causing the accounting and financial report change,working content and working method change.The oil and gas assets is the petroleum natural gas enterprise's special property,it is very different from the common enterprise's fixed asset,having its own depreciation method.Oil and gas depreciation cost in the production method is higher proportion in oil and gas production cost.This paper made a comparative analysis of international standards,introduced the depreciation method and its calculation of the oil and gas assets under the Chinese accounting standard and revealed the real work of the main problems encountered.Through the analysis and research,this paper put forward some good solutions to implement The depreciation method of the oil and gas,and suggested future payment of prospecting and mining rights use fee should be confirmed to oil and asset,impairment reversal of oil and gas asset should be allowed help relevant personnel understand the oil and gas depreciation method of the new Chinese accounting standard and to give some suggestions for their practical work.