The global petroleum market offers both tempting rewards and numerous drawbacks. This articles advises on typical ways to enter the international market, problems newcomers encounter, the variety of fiscal regimes, and assesses the prospects of various regions.

Thinking of Going International? Some Useful Tips. Johnston, Daniel, Summer 1997, pp. 1‑14.

This survey compiled by Arthur Andersen (UK) queried 63 companies on such matters as price forecasts, the environment, capital spending plans, abandonment, and future crude oil and natural gas demand.

1997 UK Oil and Gas Industry Outlook Survey Results. Newman, Peter, Summer 1997, pp. 15‑24.

In 1996, successful efforts companies began implementing a new FASB standard concerning long-lived assets. Drs. Nichols and Gallun conducted a survey last year asking companies how they expected to implement SFAS. No. 121. In this year's follow-up, they ask the same companies how they actually implemented the new standard.

Implementation of SFAS No. 121 in the Oil and Gas Industry: A Survey Update. Nichols, Linda M. and Gallun, Rebecca A., Summer 1997, pp. 25‑37.

SFAS No. 123 now requires oil and gas firms to report stock options as a part of the executive compensation package. The authors use a hypothetical petroleum firm to illustrate the significant financial reporting consequences for oil and gas firms between the old and new reporting requirements.

Executive Stock Options in the Petroleum Industry: A Comparative Illustration of the Accounting, Valuation, and Compensation Requirements under SFAS No. 123. Ward, Dan; Ward, Suzanne; and Wilson, Thomas, Summer 1997, pp. 38‑51.

New regulations under IRC Section 7701 now allow many businesses to elect either corporate or partnership tax treatment. This organizational form decision must take into account tax factors, nontax factors, and the impact of the projected firm life cycle on tax and nontax factors.

Organizational Form Decisions: A Three-Dimensional View. Wempe, Bill and Kinney, Mike, Summer 1997, pp. 52‑62.

Corporations attempt to maximize shareholder value by optimizing the trade-off between risk and return or, even better, by lowering their cost of funds without increasing their risk. This article examines the interaction of corporate capital structure, pension investment strategy, and shareholder value in the petroleum industry.

Tax Arbitrage in the Petroleum Industry: Managing the Interaction of Corporate Leverage and Pensions Assets. Kemp, Robert S.; Maloney, David M.; and Marshall, S. Brooks, Summer 1997, pp. 63‑71.

Section 7704 of the IRC, introduced by the Omnibus Budget Reconciliation Act of 1987, requires that most publicly traded partnerships be recharacterized as corporations for federal tax purposes. This article reviews the history of these partnerships and analyzes the impact of Section 7704 on these entities.

Publicly Traded Partnerships: Will Congress Save Their Tax-Favored Status? Simpson, William R.; Crain, John L.; and Jones, Kris T., Summer 1997, pp. 72‑84.

Binding arbitration agreements can help both operators and nonoperators in joint ventures settle disputes and avoid litigation. The process is usually faster and less expensive, and the conclusion, rendered by neutral arbitrators having specialized experience and knowledge in the subject matter of the dispute, may be more equitable to the parties involved.

Arbitration: A Means of Settling Oil and Gas Audit Disputes. McClellan, Al E., Summer 1997, pp. 85‑95.

In the case of Hull vs. Sun, the Oklahoma Supreme Court ruled that royalty owners did not have to sign a division order to be entitled to payment of production proceeds or interest accrued on funds suspended by the purchaser while awaiting the return of an executed division order. This vindication has spurred various owners' organizations to press for reforms in the method of payment to royalty owners.

The Payment of Royalty Owners and the Model Form Division Order. Love, Jon, Summer 1997, pp. 96‑108.

New statements from the FASB concern disclosure of information about capital structure (FAS 129), reporting comprehensive income (FAS 130), and disclosures about segments of an enterprise and related information (FAS 131). An exposure draft issued in June addresses using cash flow information in accounting measurements. In AICPA activity, the AcSEC issued proposed SOPs on reporting on the costs of start-up activities and accounting for the costs of computer software developed for internal use.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Summer 1997, pp. 109‑119.

The passage of the Small Business Job Protection Act of 1996 signaled the long-awaited S corporation reforms. Changes impact the number of eligible stockholders, tax-exempt organizations, grantor trusts, debt classification, and invalid election relief.

Tax Law Changes Governing the Use of S Corporations. Melgren, Eric, Summer 1997, pp. 120‑124.

An update on the activities of the executive council and the various standing committees and subcommittees of the Council of Petroleum Accountants Societies.

COPAS: An Update. Gear, Jon, Summer 1997, pp. 125‑144.

The accounting issues surrounding offshore platform decommissioning and field abandonment are complicated, no less so the legal and operational problems. Furthermore, there is confusion over jurisdiction, cost estimates, and tax and fiscal treatment.

Current Developments in Environmental Issues. Wright, Charlotte, Summer 1997, pp. 145‑148.