An efficient, flexible, and appropriately crafted E&P contract benefits both host governments and the international oil companies with which they do business. Four key areas of concern highlight the alignment of interests between parties: division of profits, government guaranteed share of revenue, minimizing expenses, and maximizing efficiency rates.

Key Concerns of Governments and Oil Companies: Alignment of Interests. Johnston, Daniel, Spring 2000, pp. 1‑12.

The objective of a new exposure draft issued in July 1999 by the Oil Industry Accounting Committee addressing oil and gas exploration, development, production, and decommissioning activities is to make oil company financial disclosures more comparable. However, its relationship with previously released financial reporting standards from the UK's Accounting Standards Board is problematic.

An Analysis of Recent Developments in the Regulation of UK Oil and Gas Companies. Russell, Alexander and Fifield, Suzanne G.M., Spring 2000, pp. 13‑29.

Despite the fact that the extractive industries are a major component in Australia's economy, the accounting for preproduction costs and mineral reserves and the disclosure practices of Australian extractive firms are woefully inadequate. With the forthcoming IASC position paper on extractive industries accounting due out later this year, Australian accounting professionals hope this will provide the impetus to bring more efficiency and comparability to the financial reporting system of the Australian extractive industries.

Accounting for Extractive Industries Accounting: An Australian Perspective. Wise, Trevor and Spear, Nasser, Spring 2000, pp. 30‑53.

The Polish oil industry is one of the most dynamically growing sectors of the economy and is expected to be fully privatized by the end of 2001. Although there are no separate legal accounting or taxation rules for the oil industry in Poland, since 1991 the trend has been to reshape accounting regulations to better serve free-market-oriented enterprises.

Petroleum Accounting in Poland. Jaruga, Alicja and Gierusz, Jerzy, Spring 2000, pp. 54‑66.

This is the second installment of a two-part article on the use of law in the promotion of domestic exploration and production. The authors focus on problems that are within the power of the various branches of individual state governments to address: fractionalization, subdivision, and the absence of early field-wide unitization and contend that a comprehensive regulatory approach will increase the competitiveness of domestic operations. They also argue that state officials who share the goal of promoting domestic exploration and production must recognize the serious nature of these problems and be willing to take courageous, creative, and decisive action. The first installment appeared in the Fall/Winter 1999 issue of the Petroleum Accounting and Financial Management Journal.

The Use of Law to Promote Domestic Exploration and Production. Anderson, Owen L. and Smith III, Ernest E., Spring 2000, pp. 67‑105.

Debate continues on several SFASs concerning retirement of long-lived assets, derivatives and hedging, and business combinations and intangible assets. Two EITF issues reach consensus: subsequent events caused by Y2K problems and accounting for weather derivatives. The SEC recently issued opinions on including probable and possible reserves when measuring impairment under SFAS 121 and appropriate year-end prices of the SMOG and full-cost ceiling test.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Spring 2000, pp. 106‑118.

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

COPAS: An Update. Gear, Jon, Spring 2000, pp. 119‑130.

The long-awaited Exposure Draft on Accounting for Obligations Associated with the Retirement of Long-Lived Assets was released by the FASB on February 17, 2000. This column is devoted to describing the key provisions of the Exposure Draft, especially those provisions most directly affecting companies engaged in the extractive industries.

Current Developments in Environmental Issues. Wright, Charlotte, Spring 2000, pp. 131‑133.