Impact on the interface with ee and development

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Unformatted text preview: a component approach to asset depreciation. Impact on transition to IFRS of data conversion. Impact on impairment models for any changes to CGUs on transition. Selection of impairment model with links to tax, financing etc. Impact on the interface with E&E and development assets to reflect work progress and changes in estimates as extraction occurs. Accounting systems need to identify discount rates specific to each liability and this may lead to changes in the sub-ledger and provision calculation models as well as the general ledger. Depletion, depreciation & amortisation Impairment of nonfinancial assets Decommissioning and environmental provisions 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. Impact of IFRS: Oil and Gas 25 Accounting differences Joint arrangements Potential systems and process impact Identification of accounting differences between information provided by joint arrangement operators and IFRS principles could lead to changes in reporting packages used and central adjustments required. System changes may be required to adjust for accounting policy differences for the compilation of the consolidated financial statements. Clear identification of transactions with out-of-the-ordinary revenue recognition characteristics, such as exchanges of assets. Changes to the mapping of such transactions within accounting systems. Revenue recognition 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. 26 Impact of IFRS: Oil and Gas Parallel reporting: Timing the changeover from local GAAP to IFRS reporting Conversion from loca...
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This note was uploaded on 12/03/2012 for the course ACCOUNTING 102-1132 taught by Professor Accountinggroup during the Fall '11 term at Al-Quds University.

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