Prior to the Enron/Arthur Andersen scandal, special purpose entities (SPEs), by which a company could fund growth initiatives without the burden of using market loan rates to finance that growth, were not well understood or publicized. Since becoming front-page news, the effective demise and decline of Enron and Arthur Andersen have made these off-balance sheet financing tools one of the hottest accounting topics in years. What did Enron, Arthur Andersen, and others do that was wrong? This paper examines the mechanics of SPEs (before Enron) to find out what went wrong and asks whether the proposed regulations for using SPEs (post-Enron), if pursued, might have prevented the Enron debacle.

Accounting for SPEs and the Impact on Professionalism. Finn, Don W., Summer 2002, pp. 1‑17.

The management accounting standards of the UK petroleum industry may well become the global industry standard. In a remarkably innovative and enterprising manner, the UK oil and gas industry has taken a world lead in promulgating industry-specific management accounting standards called Standard Oil Accounting Procedures (SOAPs). This proactive initiative should enhance efficiency in the industry by developing best practice in managerial accounting and serve as an exemplar of good practice, which other industry groupings may adapt to their own specific requirements.

Developments in UK Standard Oil Accounting Procedures (SOAPs). Russell, Alexander and Sihotang, Parulian, Summer 2002, pp. 18‑37.

Although the Chinese oil and gas sector has grown rapidly over the past decade, much work still remains. Growing demand is already outstripping production, and the gas industry is still in an underdeveloped stage. No comprehensive legal framework exists, and there are improper restrictions on import, export, and pricing of crude oil and oil products. Forecasts suggest that by 2010 China will experience a shortage of more than 10 million tons of oil and will need to find a way to reduce this demand and supply gap.

China is Inching towards a Market Economy in the Petroleum Sector. Crumbley, D. Larry and Wasan, Sonia, Summer 2002, pp. 38‑49.

This paper explores the impact of SFAS 131 on the financial reporting practices of multi-national companies in the petroleum industry. Does financial reporting under the new standard (SFAS 131) result in more disaggregation and thus a “finer” information set than under its predecessor (SFAS 14)? The authors examine a sample of companies in other industries to provide a perspective for the disclosures of oil and gas companies.

Geographic Segment Disclosures for the Petroleum Industry under SFAS 131. Nichols, Dave L and Wilder, W. Mark, Summer 2002, pp. 50‑67.

Everyone hopes that each drilling opportunity goes smoothly from the beginning when the lease is evaluated through the time of a profitable payout and up to and including an easy plugging by the grandchildren of the original lessees. Unfortunately, this seldom happens. In the business of mineral development it is best to know the potential pitfalls in advance, as well as the available methods for resolving any problems that may arise, many of which can be readily identified and resolved if the practitioner knows where to look

Common Issues and Remedies: What Do You Do When a Good Thing Goes Bad? Rodgers, W. Stephen, Summer 2002, pp. 68‑90.

Last fall, the IRS and Congress enacted significant changes (now in effect for 2001 and subsequent years) concerning the calculation of depreciation. This article focuses on how those changes affect the depreciation of oil and gas equipment classified in Asset Class 13.2 of Revenue Procedure 87-56, 1987-2 C.B. 674 (oil and gas producing equipment, 7-year general recovery period). In addition, the article reviews the depreciation for Indian reservation property and the impact upon it of the changes made in 2001.

Tax Strategies for Maximizing Depreciation, Including Deductions for Indian Reservation Property—2001 and Beyond. Pulliam, Robert D., Summer 2002, pp. 91‑100.

Many people are quick to point out the imperfections associated with the government take metric. As is true of using any metric, there is an advantage in understanding both the strengths and weaknesses. Take does not measure everything that matters to a government. Daniel Johnston offers a retrospective look at the concept of government take and why it is sometimes so difficult a subject to grasp.

Current Developments in Production Sharing Contracts and International Concerns: Retrospective Government Take—Not a Perfect Statistic. Johnston, Daniel, Summer 2002, pp. 101‑108.

No longer a novelty, e-business is a fact of life in today's economy and can greatly facilitate the timely flow of information between an E&P company and its investors. However, not every independent oil company is eager to embrace this change.

Current Developments in e-Business and Enterprise: Investor Relationship Management (IRM). Hoffman, Jim, Summer 2002, pp. 109‑114.

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

COPAS: An Update. Gear, Jon, Summer 2002, pp. 115‑122.