Proposed Statements from the FASB address closure or removal of long-lived assets, earnings per share (EPS), and disaggregated information. The SEC staff at the 1996 AICPA conference discussed interest rate swaps, disclosure of accounting policies, alternative measures of performance, environmental liabilities, SFAS No. 21 implementation, segment reporting, statement of cash flows, and valuation allowance for deferred tax assets.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Spring 1996, pp. 1‑10.

An update of the activities of the Council of Petroleum Accountants Societies from Executive Director Jon Gear.

COPAS Update. Gear, Jon, Spring 1996, pp. 11‑20.

Advance word on a new FASB standard on accounting for liabilities related to closure or removal of long-lived assets suggests that it could change how virtually every petroleum company accounts for future dismantlement, closure, and environmental costs.

Current Developments in Environmental Matters. Wright, Charlotte, Spring 1996, pp. 21‑24.

The IRS in 1978 established the Petroleum Industry Program (PIP), an arm of its Industry Specialization Program headquartered in Dallas, to enhance communication between IRS staff and industry representatives. Mr. Wilson reports on issues currently under consideration at the PIP.

Current IRS Issues Affecting the Petroleum Industry. Wilson, William H., Spring 1996, pp. 25‑46.

Risk management today involves not only the risks that exist in the core business activities, but also those associated with derivative financial instruments. This article provides a broad overview of typical core business risks, the derivatives used to address those risks, and the risks and controls that are necessary for the derivatives themselves.

Hedging in the Oil and Gas Industry: Risks and Controls. Smith, Pam, Spring 1996, pp. 47‑60.

Utilizing data from a study conducted by the Association of Fraud Examiners (ACFE), the authors analyze 41 cases of fraud which occurred in the oil and gas industry. The findings reported by the authors may serve to alert managers and auditors—both internal and external—to areas under their control that are particularly vulnerable to fraud.

Fraud in the Oil and Gas Industry. Welch, Sandra T.; Holmes, Sarah A.; and Strawser, Robert H., Spring 1996, pp. 61‑80.

Fraud has essentially the same meaning in the criminal context as in the civil context, although they share vastly different burdens of proof. Evidence that may not support a conviction for criminal fraud may suffice in a civil action.

Civil vs. Criminal Fraud: A Short Primer. Couch, J. Christopher and Moore, Todd R., Spring 1996, pp. 81‑88.

This article reports on an industry-specific survey of the senior management of over 300 oil and gas companies on their awareness of fraud within their organizations conducted by KPMG's Forensic and Investigative Accounting Services in Calgary, Alberta.

1995 KPMG Oil and Gas Industry Fraud Survey Report. Spring 1996, pp. 89‑105.

The uncovering of fraud—depending on who uncovers the fraud— can make or break an auditor's career. An audit department that works effectively within the organization on fraud detection will earn the appreciation of management, while increasing shareholder and public confidence in the company.

The Fleecing of Corporate America: The Internal Auditor's Challenge. Swisher, Barry, Spring 1996, pp. 106‑116.

Since 1991 courts have had the jurisdiction to assess large fines and sanctions against organizations engaging in criminal misconduct and to hold companies accountable for the misconduct of any employee at any level. Corporate codes of conduct are a good beginning, but ethical compliance across all levels of an organization is the key to protecting an organization's culpability should misconduct occur.

Creating an Effective Process for Managing Ethical Performance. Ponemon, Larry A. and Bell, Timothy B., Spring 1996, pp. 117‑123.