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Unformatted text preview: be modified to: gather additional disclosures in the information from branches or subsidiaries operating on a standard general ledger package; or collect information from subsidiaries that use different financial accounting packages. Financial reporting tools Reporting tools can be used to: perform the consolidation and prepare the financial statements based on data transferred from the general ledger; or prepare only the financial statements based on receipt of consolidated information from the general ledger. Action Update consolidation systems and models to account for changes in consolidated entities. Modify reporting packages and the accounting systems used by subsidiaries and branches to provide financial information. Also communicate new requirements to operators of joint ventures. Modify: reporting tools used by subsidiaries and branches to provide financial information; mappings and interfaces from the general ledger; and consolidation systems based on additional requirements such as segment reporting in some cases. Oil and gas accounting differences and respective system issues
The following table outlines some of the salient accounting differences that we have noted earlier, together with potential systems and process impacts. Accounting differences Exploration and evaluation costs Potential systems and process impact Interaction between technical E&E processes and accounting systems to clearly identify milestones such as licence acquisition and determination of commercial reserves. Impact on master data settings to reflect changes in E&E capitalisation policies. Impact on general capitalisation process and systems settings based on differences in eligible costs for capitalisation, e.g. unsuccessful drilling, seismic, pre-feasibility costs. Allocation of assets to CGUs and depletion units of account. Impact of changes to depreciation methods and useful lives on the posting specifications of the fixed assets sub-system. Impact on master data settings and structure based on...
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