Current Developments in Financial Accounting and Reporting Impacting the Exploration and Production Industry
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Megan McFarland
This article covers recent pronouncements and interpretations from the Financial Accounting Standards Board including the January 15, 2008 release of the long-awaited FASB Accounting Standards Codification for a one-year verification period. Pronouncements and interpretations issued by the FASB include FAS 157 (fair value measurements); FAS 141(R), Business Combinations; FAS 160, Non-controlling Interests in Consolidated Financial Statements; and FAS 161, Disclosures About Derivative Instruments and Hedging Activities, an amendment to FAS 133. The SEC has had several releases, including new disclosure rules for smaller companies, a proposal to defer the section 404 attest requirement for smaller public companies and various clarifications and recommendations for improving fair value disclosures in MD&A, all of which are applicable to many industries. Specific to oil and gas, the SEC is beginning to talk about reserve definitions again.
Current Developments in Financial Accounting and Reporting Impacting the Exploration and Production Industry. McFarland, Megan, Spring 2008, pp. 1‑7.