The US Federal Accounting Standards Advisory
Board (FASAB) has issued standard on accounting for federal oil and
gas reserves.

Federal reserves are the estimated quantities
of oil and gas under federal land that is believed to be
recoverable in future years under existing economic and operating

SFFAS 38 Accounting for Federal Oil and Gas
Resource provides a three-year period of experimental reporting,
meaning the reserves do not have to be valued and included in the
balance sheet.

By requiring the federal government to report
its royalty share of estimated oil and gas production, the FASAB
hopes to gain insight into the challenges associated with valuing
these assets and liabilities.

In addition to the values, a discussion of all
significant federal oil and gas resources under management by the
federal government – including those not yet “proved” – is required
to provide context for the reader.

The board has taken a different accounting
approach that in other standards because of the volatility and
uncertainty that is inherent in oil and gas reporting.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.