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

- 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 recognition – point at which recognized + net royalities
o Production – lifiting costs getting out of ground then prepare for sale
(separating into compoinents of o/g/water)
o Unitization – all interests in properties unitized (working interests, royalty
interest); is based upon the ownership acreage – give a breakout of how
much each party owns
o Underlift vs ovelrift – take more oil (over) in a month than your share, you own
50% property and you took 52%, next month try to balance doing production
balancing so underlift next
o Entitlement 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