FASB activity reported in this issue includes an exposure draft on employee stock options, an EITF on environmental liabilities, and Issue No. 93-6, "Accounting for Funding Cover Reinsurance Arrangements." The SEC issued the final rules for EDGAR on March 18, 1993. The Accounting Standards Executive Committee issued an exposure draft on disclosure of risks and uncertainties. The Auditing Standards Board issued an exposure draft on using the work of a specialist. Legislation is pending on the Financial Fraud Detection and Disclosure Act.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Summer 1993, pp. 1‑10.

The Clinton BTU tax proposal and the Revenue Reconciliation Act of 1993 are the focus of this issue's taxation update. The authors detail the taxation's impact on the various categories of petroleum products and outline the proposed points of collection and the liability and remittance of the tax Further discussion concerns exemptions and administration of the legislation.

Current Update in Oil and Gas Taxation. McElroy, Ted E. and Smith, Ira L., Summer 1993, pp. 11‑22.

A report on the activities of the Council of Petroleum Accountants Societies Board of Directors and Council meeting, plus the completed and on-going projects of the various standing committees.

COPAS: An Update. Westbrook, Jack, Summer 1993, pp. 23‑27.

The issue's column answers some commonly asked questions regarding environmental Auditing, specifically addressing what it is, how it relates to financial Auditing, and the motivating factors for doing environmental audits.

Current Developments in Environmental Issues. Wright, Charlotte, Summer 1993, pp. 28‑31.

Changes brought about by deregulation and the changing cost structure of finding natural gas versus the finding and producing of oil suggest that the next century will be the century of natural gas, Jeff Skilling, CEO of Enron Gas Sciences Corporation, discusses the underlying economics of natural gas and explains why he foresees very significant changes in the industry in the future.

What Does the Future Hold in Store for Energy? Skilling, Jeff, Summer 1993, pp. 32‑48.

Three acknowledged experts in the petroleum industry consider, among other topics, the following questions: What effect will targeted tax credits have on the petroleum industry? Will more competitive, open markets create more or less market volatility? What kind of capital is required to realize the potential of natural gas world-wide? What will be the impact of the long-term contracts?

A Roundtable Discussion on Risk Allocation and Gas Markets. Skilling, Jeff; Gaskin, Darius; and Knapp, David, Summer 1993, pp. 49‑53.

Mr. Bowlin, president of ARCO, presents his views on the outlook for global oil exploration and development. In addition to a forecast of the trends for oil prices world-wide, he also assesses both geologic prospects and political factors of various regions of the world that in his opinion offer the best possibilities for increased exploration and development activity.

Outlook for Upstream Oil Investments in the World. Bowlin, Mike, Summer 1993, pp. 54‑58.

This article reviews the 1992 annual reports of oil and gas producers, focusing on the five major categories of supplemental disclosures required by SFAS 69.

SFAS 69 Disclosure Update: A Survey of 1992 Financial Reports for U.S. Oil and Gas Companies. Boone, Jeff, Summer 1993, pp. 59‑73.

The authors analyze the special problems of applying SFAS No. 106 compensation rules to oil and gas firms employing joint interest accounting methods. The authors present an overview of SFAS No. 106, then analyze the results of a survey concerning how joint interest companies currently handle post-retirement benefits and discuss alternative methods by which joint interest accounts might handle these benefits.

Application of SFAS No. 106 to Oil and Gas Joint Returns. Bushong, J. Gregory and Nichols, Linda M., Summer 1993, pp. 74‑85.

Unlike other courts of law, the U.S. Tax Court generally places the burden of proof on the accused. An exception to this practice exists incases involving the accumulated earnings tax, wherein the burden of proof shifts to the IRS. The issue frequently hinges on reasonableness of accumulations. The authors analyze two recent Tax Court decisions in which the taxpayer's ability to demonstrate the reasons for accumulations influenced the court's ruling.

Shifting the Burden to the IRS in Accumulated Earnings Decisions. Crumbley, D. Larry; Coker, Dianna Rose, Summer 1993, pp. 86‑94.

Do targets or bidders benefit from hostile takeovers? Do friendly acquisitions offer sufficient incentives to avoid prolonged capital market exposure? This article analyzes the impact of hostility on returns to stockholders of both target and bidding firms in mergers and acquisitions involving petrochemical firms from 1988 through 1990.

Hostility and Stockholder Returns Associated with Petrochemical Acquisition Targets and Successful Bidders. Bradford, Bruce M.; Toyne, Michael F.; and Robison, H. David, Summer 1993, pp. 95‑108.