The FASB has issued an SPAS exposure draft addressing accounting for impairment of long-lived assets, identifiable intangibles, and goodwill related to those assets. The recent FASB exposure draft on stock-based compensation has generated considerable controversy. SEC news focuses on discount rates measuring obligations and costs under SEAS No. 87 and No. 106. In an address to the American Bar Association in August of 1993, SEC Commissioner Richard Roberts discussed the Commission's stand on materiality. The AICPA's "Audit Risk Alert-1993"is highlighted.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Spring 1994, pp. 1‑13.

Executive Director Westbrook reports on the activities of the Council of Petroleum Accountants Societies' Board of Directors meetings, plus various projects of the standing committees.

COPAS: An Update. Westbrook, Jack, Spring 1994, pp. 14‑31.

The environmental impact of NAFTA is the subject of this issue's column.

Current Developments in Environmental issues. Wright, Charlotte and Beard, Bryan, Spring 1994, pp. 32‑34.

The editor answers reader's questions concerning amounts received as "cost recovery "oil under production sharing contracts and accounting for the costs of 3-D seismic studies of producing reservoirs.

The Accounting Forum. Brock, Horace, Spring 1994, pp. 35‑37.

The first quarter of 1986 saw one of the sharpest price declines in the history of the oil industry. Plummeting prices led to massive cuts in domestic exploration and production expenditures, increased foreign exploration, the emergence on natural gas an alternative energy source, and a significant increase in the purchase of proved reserves. The author investigates the impact of the 1986 oil price decline on the reserve replacement strategy of independent O&G producers.

The Impact of the 1986 Oil and Price Decline on the Reserve Replacement Strategy of Independent Oil and Gas Producing Firms. Spear, Nasser A., Spring 1994, pp. 38‑49.

This article provides and exhaustive overview of research on the usefulness to financial statement users of the reserve quantity and reserve value disclosures required under SFAS No.69.

New Trends in Reserve-Based Accounting Research. Alciatore, Mimi, Spring 1994, pp. 50‑68.

A recent tax court case involving energy sales to Japanese companies by Phillips Petroleum hinged on the definition of independent distributor, income sourcing, and the inclusion of "shaken," a Japanese concept related to the U.S. accounting concept of goodwill, as an intangible asset.

Foreign Oil-Related Income Found in Gas Sales to Japanese Non-Distributor Companies. Coker, Dianna Boss and Crumbley, D. Larry, Spring 1994, pp. 69‑78.

Neither the courts nor the legislatures can agree on a precise definition of division orders. The author discusses the various types of division orders, their legal effect, and the varying legislative responses in oil-producing states.

Recent Legislation Affecting Division Orders. Ihloff, T. W., Spring 1994, pp. 79‑87.

Over the last decade, most of the failures of exploration and production ventures can be attributed to price risk. By utilizing existing financial instruments, today's producer can control price risk, obtain additional funding for oil and gas acquisition, stabilize profits and cash flows, reduce both the cost of equity and borrowing funds, and increase the existing borrowing base.

Controlling Price Risk. Williams, Jim and Jackson, Gary, Spring 1994, pp. 88‑116.

The standard deviation of security returns and the sensitivity of security returns to market returns traditionally serve as the cornerstones of risk analysis. The authors analyze the usefulness of the measures in explaining the risk-return behavior of oil and gas firms over the last five years.

Risk and Return Characteristics of Oil and Gas Firms. Cudd, Robert M. and Crain, John L., Spring 1994, pp. 117‑127.

Because the form and content of a company report published in the UK is to a large extent determined by statutory rules, it is important to Understand the factors which influence the setting of those rules. This article considers the factors which have influenced the establishment of the accounting rules which govern the UK oil and gas industry.

The Regulation of Financial Reporting in the UK Oil and Gas Industry. Russell, Alex and Lyon, Robert A., Spring 1994, pp. 128‑141.

The FASB requires supplemental disclosure of net present value data for oil and gas companies--a departure from historical cost-based data. Earlier studies of the usefulness of these data have obtained mixed results. This study extends prior work and indicates that the required disclosures contain incremental information content.

The Incremental Information Content of Supplemental Accounting Disclosures under SFAS 69. Thornton, Phillip W and Deakin, Edward B., Spring 1994, pp. 142‑161.