Fundamentals of Joint Venture Accounting in the Oil & Gas Industry

About the Course

Joint Ventures (JVs) are now commonly used in all major industries, in the oil and gas industry — they are a vital component of most major company portfolios serve as a solution to many corporate development challenges. The diversity of JV structures in terms of formation and the contributions of individual partners have both advantages and disadvantages.

JVs can deliver the benefits of collaboration and risk-sharing while maintaining corporate independence and avoiding the economic and political risk associated with a merger or acquisition. Hence, it is mandatory for the managers and employees in Oil and Gas companies to be aware of the fundamental of JV accounting to develop the essential skills necessary to prepare and evaluate joint venture accounts and improve the organisation’s account function.

This interactive Fundamentals of Joint Venture Accounting in the Oil and Gas Industry training course will cover the main issues regarding the accounting and financing of joint venture operations, the significant financial accounting principles and standards, and the application of the accounting and financial information to the companies to enable them to assess the impact of JV projects on its performance.

Core Objectives

Delegates will achieve the following objectives:

• Understand joint ventures, forms, and structures in the oil and gas industry
• Recognise the different accounting methods for joint ventures
• Identify the major financial accounting principles and standards
• Analyse the types of joint venture agreements and the accounting impact of each
• Recognise interest in a jointly controlled entity using different techniques
• Apply the accounting treatments of costs for IFRS reporting
• Measure the impact of Significant Influence

Training Approach

This training course will use proven learning techniques to ensure maximum understanding, comprehension, and retention of the information presented. The training course will follow a participative workshop format. It will be focused on developing practical skills that delegates can apply in real-life business situations upon returning to their organisation.

The Attendees

This training course will be valuable to professionals, including (but not limited to) the following:

• Joint Venture Accountants
• Joint Venture Auditors
• Joint Venture Advisors
• Financial Analysts
• Accounting Managers
• Financial Reporting Managers
• Budgeting Managers
• Cost Control Managers
• Investment Analysts and Managers

Daily Discussion

DAY ONE: OVERVIEW OF JOINT VENTURE IN THE OIL & GAS SECTOR

• Identifying a joint venture in the oil and gas sector
• Major Features and Characteristics of joint venture
• Different types of joint venture
• Partnership and joint venture
• Joint venture and Consignment
• Advantages and disadvantages of a joint venture

DAY TWO: FUNDAMENTALS OF ACCOUNTING IN JOINT VENTURE

• Concept of accounting for joint venture
• Characteristics of accounting for joint venture
• Types of Accounting for joint venture
• Jointly Controlled Operations
• Jointly Controlled Assets
• Jointly Controlled Entities
• Accounting for joint ventures: Journal Entries
• Benefits and Limitations of Accounting for joint ventures

DAY THREE: ACCOUNTING TREATMENT FOR JOINT VENTURE

• What is the accounting treatment for joint ventures?
• Recording joint venture accounting transactions
• Methods of maintaining joint venture accounts
• When separate books are not kept
• When different books are kept
• Memorandum joint venture Account

DAY FOUR: THE EQUITY METHOD AND PROPORTIONAL CONSOLIDATION OF JV ACCOUNTING

• Equity Method of Accounting
• Proportional Consolidation Method of joint venture Accounting
• Determining the applicability of the equity method
• Considerations for investment banking
• Applying the equity method of accounting to a joint venture

DAY FIVE: CONTEMPORARY TRENDS IN JOINT VENTURE ACCOUNTING

• Accounting for tax treatment
• Revenue Recognition
• IFRS 11 Joint Arrangements
• Operators and non-operator contributors
• Reporting of Expenditures
• Accounting for Joint Venture Losses

Certificate Awarded

Upon successful completion of this training course, participants will be awarded a Certificate of Completion from XCalibre Training Centre, acknowledging their accomplishment. This certificate serves as a testament to their dedication to developing their skills and advancing their expertise in their respective fields.