The Texas Comptroller of Public Accounts issued on December 11, 2007, the final set of rules implementing the Texas Margin Tax. The purpose of this article is to present those provisions of the Rules that are different from or clarify the Margin Tax statute, as amended. This concludes a two-part series on the Texas Margin Tax; Part I appeared in the Summer 2007 Petroleum Accounting and Financial Management Journal.

Texas Margin Tax, Part II. Pulman, Charles D. and Hineman, Thomas G., Fall/Winter 2007, pp. 1‑74.

Proper recognition of asset retirement obligations requires a careful review and analysis of the specific facts and circumstances pertaining to each situation. Obligations incurred during the operating life of the long-lived asset present additional complexities. Care must be exercised to ensure that supportable assumptions are used to recognize these liabilities. While implementation issues should have been addressed upon adoption of FAS 143, over time complexities have arisen (e.g., layers of obligations recorded at different discount rates) that require careful attention by financial statement preparers.

Asset Retirement Obligations Update. Friou, Craig, Fall/Winter 2007, pp. 75‑83.

This paper critically examines the association of executive pay and firms' accounting performance as a function of the accounting method used, successful efforts vs. full cost. Specifically, they test whether or not there is any link between the accounting method used for exploration expenditures and pay-performance sensitivity. Using alternate measures of accounting performance, the authors estimate econometric models of CEO cash compensation and total compensation that incorporate the interaction of the selected accounting method and accounting performance.

CEO Pay and Accounting Choice in Oil and Gas Firms. Baumer, David; Iyengar, Raghavan J.; Moffie, Robert P.; and Tower, Ralph, Fall/Winter 2007, pp. 84‑101.

Tax reform isn't dead, but it isn't as sexy as it used to be. Bold initiatives appear to be taking a back seat to tweaks and fixes. Congress seems to have difficulty in finding a vehicle for tax legislation, and with the Bush Administrations and Democrats in Congress at odds, any hope for meaningful tax legislation seems pretty much stalled for now.

Federal Tax Update. Miranda, William, Fall/Winter 2007, pp. 102‑122.

With most petroleum companies having operations or interests of some kind in multiple countries, the oil and gas sector is by far one of the most international industries. This article examines several aspects of the effect of international accounting standards and global harmonization on the oil and gas industry.

An Updated Look at the Oil Industry and International Harmonization of Accounting Standards. Nichols, Linda M., Fall/Winter 2007, pp. 123‑139.

With the price of oil moving towards historically high levels and petroleum companies experiencing record profits, many investors are looking for opportunities to invest in oil and gas through syndicated drilling promotions. Such ventures promise investors tax deductions and high income potential, but they come with significant business and tax risks. This article examines the history of turnkey oil and gas drilling promotions and the potential pitfalls investors may encounter in seeking to secure tax deductions for intangible drilling and development costs.

Securing IDC Deductions for Investors in Oil and Gas Drilling Partnerships. Pulliam, Robert, Fall/Winter 2007, pp. 140‑149.

If recent events are any indicator, it is highly likely that U.S. based SEC registrant companies will be required to transition from U.S. GAAP to International Financial Reporting Standards (as published by the International Accounting Standards Board) in the not too distant future. This and future articles will focus on current events in this area and, specifically, issues related to oil and gas producers. This article is devoted to background related to SEC activities in regard to the acceptance of IFRS, while future columns will focus on various issues related to IASB activities regarding accounting for and disclosure of oil and gas producing activities.

Current Developments: International Financial Reporting Standards. Wright, Charlotte, Fall/Winter 2007, pp. 150‑152.

An update on the various activities and projects of the Council of Petroleum Accountants Society (COPAS) from the executive director.

COPAS: An Update. Jones, Susan H., Fall/Winter 2007, pp. 153‑156.