In its annual report for 2006, the International Accounting Standards Board outlines an ongoing research project that considers accounting issues that are unique to upstream extractive activities in the minerals and oil and gas industries. The research is being undertaken by a team of national standard-setters from Australia, Canada, Norway and South Africa. The team’s preliminary findings include ‘suitable measurement bases’ for accounting for assets including minerals and oil and gas reserves and resources.
The IASB team also worked with members of another IASB unit, the Australian Committee for Mineral Reserves International Reporting Standards (CRIRSCO) and of the Society of Petroleum Engineers Oil and Gas Reserves Committee to identify the potential for achieving greater convergence or common understanding between minerals and oil and gas reserve and resource definitions. When completed, this review will assist the Board’s future deliberations on the use of the reserve and resource definitions in international financial reporting. IASB oil and gas members include Gaz de France, Nippon Oil, Petrobras, RWE and Shell.
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