Since the adoption of FAS 19 in 1977, technological advances in the siting of oil wells, particularly 3-D and 4-D seismic studies, have drastically reduced the errors inherent in the earlier seismic methods. Today, many people in the oil and gas industry think it may be time to revise the rules and allow the capitalization of geological and geophysical expenses.

Seismic Costs—Is It Time to Revisit the Rules? Jennings, Dennis R., Spring 1998, pp. 1‑5.

Oil and gas companies have unique problems with the use of historical cost in reporting exploration and development activities, problems which impact the usefulness of their financial reports in evaluating performance and making informed investment decisions. This paper offers an accessible review of responses received when the issue of historical costs was raised in a recent UK discussion paper by the Oil Industry Accounting Committee.

Accounting for the Value of Discovered Reserves of Oil and Gas: Responses to a UK Discussion Paper. Pratt, Ken, Spring 1998, pp. 6‑51.

Mergers, acquisitions, and bankruptcies over the past two decades have significantly altered the oil and gas industry. At the same time, increased specialization in the accounting profession has resulted in fewer firms providing services to any one particular industry. This article examines the concentration and assesses the competitiveness of the audit firms that service the oil and gas industry.

Auditor Concentration in the Oil and Gas Industry. Scheiner, James H. and Wheatley, Clark M., Spring 1998, pp. 52‑64.

In today's natural gas market, physical and financial swing options may be used to hedge against one another. The savvy options trader can often find a very close hedge in the financial markets for the physical instrument he or she is selling. The risks, however, are considerable.

Risk and Reward of Natural Gas Volume Swing Options. Lehman, John and Worthy, Lewis J., Spring 1998, pp. 65‑71.

This articles analyzes the financial performance of 25 oil and gas firms (majors, minors, and independents) from 1986-1995 using the Altman bankruptcy model as a barometer.

Using the Altman Bankruptcy Model to Analyze the Performance of Oil Companies. Sena, James and Williams, Dennis, Spring 1998, pp. 72‑92.

In this issue, Mr. Jennings reports on EITF 98-4, the recording of goodwill in a purchase business combination, and Issues 98-1 and 97-15. The SEC has issued SAB 98 which offers some guidance concerning FAS 128 and 130; the SEC staff have also recently clarified their position on FAS 131. A new ruling by the SEC requires "plain English" usage for the cover page, summary, and risk-factors section of all prospectuses. SOP 98-1, issued in March by the AICPA Accounting Standards Executive Committee, addresses whether and under what circumstances internal-use software should be capitalized.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Spring 1998, pp. 93‑111.

A report from the executive director on the on-going activities of the various committees and subcommittees of the Council of Petroleum Accountants Societies.

COPAS: An Update. Gear, Jon, Spring 1998, pp. 112‑124.

The disposal of the Brent Field spar in 1995 by Shell Expo was viewed by the UK government as a test case that would largely influence the way in which dismantlement's are handled in the future. It was a disaster. In March 1998, Shell Expo announced a new disposal plan which involves dismantling the rig in a Norwegian fjord and using the pieces to build a quay extension.

Current Development in Environmental Issues. Wright, Charlotte, Spring 1998, pp. 125‑128.