test 2 review.docx - Slides on Canvas for chapter 9-12 14-16 Not much on CH.9 o ARO(10 and impairment(11 and disclosures o Revenue accounting

test 2 review.docx - Slides on Canvas for chapter 9-12...

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-Slides on Canvas for chapter. 9-12, 14-16-Not much on CH.9oARO (10) and impairment (11) and disclosuresoRevenue accounting recognition – point at which recognized + net royalitiesoProduction – lifiting costs getting out of ground then prepare for sale (separating into compoinents of o/g/water)oUnitization – all interests in properties unitized (working interests, royalty interest); is based upon the ownership acreage – give a breakout of how much each party ownsoUnderlift vs ovelrift – take more oil (over) in a month than your share, you own50% property and you took 52%, next month try to balance doing production balancing so underlift nextoEntitlement method – book the amount youre entitled to (50% interest, you took 52%, still book the amount youre entitled to – balances costs and revenue and becasie you try to balance overtime since the over and undertakes will even out over time) – its immaterial, and alleviates a lot of details accounting o
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  • Spring '14
  • SCOTT,WWAYNE
  • Impairment, Revenue, Generally Accepted Accounting Principles

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