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Accounting for the oil, gas and mining industries

Accounting for the extractive industries is a specialist area that requires expertise and an understanding of the business. On this page you can access a range of articles, books and online resources providing quick links to practical guidance and background information, including the Statement of Recommended Practice: Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities.

See our separate page on IFRS 6: Exploration for and Evaluation of Mineral Resources and Business & Industry Guides on oil and gas and the extractive industries.

What's on this page?

  • Statements of Recommended Practice
  • Useful links
  • Online articles
  • Books and articles from the library

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Statements of Recommended Practice

Issuing body

Statements of Recommended Practice (SORPs) related to oil and gas activities were issued by the Oil Industry Accounting Committee (OIAC).

Full text sources for the SORP and associated guidance

Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities
The full text of the June 2001 SORP as issued by the OIAC.

The status of OIAC's Statements of Recommended Accounting Practice (SORP)
Notice published by the OIAC in October 2013 on current and future guidance. It states that the SORP will no longer apply to any entity for accounting periods beginning on or after 1 January 2015.

The SORP remains applicable for non-listed entities reporting under UK accounting standards until such time as those entities adopt FRS 100-102.

The SORP will no longer apply to any entity for accounting periods beginning on or after 1 January 2015 (the deadline for the application of FRS 100-102). However, the SORP is being retained below on the OIAC website as a reference document.

Useful links

Extractive Industries Transparency Initiative (EITI)

Extractive Industries Transparency Initiative guidance
Guidance, updated in April 2016, from the Department for Business, Innovation & Skills on the EITI and the reporting process for oil and gas companies and for mining and quarrying companies. It includes links to downloadable reporting templates and updated guidance.

Oil and gas

IFRS oil and gas insights
Bulletins, reports and illustrative financial statements produced by EY.

Global oil and gas tax guide
Annual EY guide summarising oil and gas tax regimes in over 80 countries.

Financial reporting in the oil and gas industry: International Financial Reporting Standards
Detailed guide published by PwC in July 2017 discussing significant accounting issues in the oil and gas value chain, upstream activities, midstream and downstream activities, sector-wide accounting issues, financial instruments and embedded derivatives, first time adoption, IFRS 9, IFRS 15 and IFRS 16.

Oil Industry Accounting
Section of the HMRC Oil Taxation Manual looking at accounting issues for the oil and gas industry, including the adoption of IFRS by UK companies, UK GAAP, underlift and overlift, full costs and successful efforts accounting methods, and joint venture accounting.

Oil Taxation Manual
HMRC manual giving an overview of the law and practice for the oil fiscal regime, in particular Petroleum Revenue Tax, ring fence Corporation Tax and the supplementary charge.

Sample Letter Sent to Oil and Gas Producers
Text of a letter sent to oil and gas producers by the US SEC in February 2004 with a list of points (including reserves) to be considered in filing accounts with the SEC.

Oil and Gas Producing Activities
Codification of SEC Staff Accounting Bulletins on oil and gas industry accounting, which includes the accounting and reporting requirements relating to estimates of quantities of proved reserves, estimates of future net revenues and disclosure of reserve information.

Mining

Refining IFRS
Series of bulletins produced by EY looking at practical issues on applying IFRS for mining and metals companies.

Mining reporting survey 2016
Survey of 25 major global mining companies conducted by KPMG, published in November 2016, examining trends in financial reporting. The detailed report examines issues around estimates and judgments, use of non-GAAP measures, disclosure of risk, valuation and various other trends.

Disclosing payments to governments: Mining and metals in an era of transparency
Guide from EY, published in February 2016, explaining disclosure requirements regarding payments to governments for natural resource extraction in different jurisdictions. It includes a side-by-side comparison of disclosure rules covering the Dodd-Frank Act, EU Accounting and Transparency Directive, the Extractive Industries Transparency Initiative (EITI), Canada's Extractive Sector Transparency Measures Act and Australia's Publish What You Pay private senator's bill.

The new revenue recognition standard – mining and metals
Detailed guide published by EY in June 2015 examining the key implications of IFRS 15 on reporting for metals and mining entities.

EU introduce requirements to disclose payments to governments
Bulletin released by PwC in June 2013 on new disclosure requirements for entities in the extractive and logging industries.

Organisations

Council of Petroleum Accountants Societies (COPAS)
US body created in 1961 to ‘provide a forum for discussing and solving the more difficult problems related to accounting for oil & gas’ in the US and Canada. COPAS issues a range of accounting guidelines and manuals.

Financial Accounting Standards Board (FASB)
Website of the FASB includes the full text of standards and interpretations of relevance to the extractive industries, including Statement No. 69 Disclosures about Oil and Gas Producing Activities.

Institute of Petroleum Accounting
US-based institute that publishes a range of books and surveys on accounting practices in the oil and gas industries. It also publishes Petroleum Accounting and Financial Management Journal.

Oil and Gas UK
Body which represents oil and gas companies with upstream interests in the United Kingdom Continental Shelf (UKCS). It publishes the Standard Oil Accounting Procedures (SOAPs), which are issued by the Oil Industry Finance Association (OIFA) committee.

Oil Industry Accounting Committee (OIAC)
Organisation established in 1984 ‘representing the views of the oil and gas industry in various accounting forums and to give guidance on the interpretation and application of accounting standards to the industry’. The OIAC is the issuing body for the SORP covering the oil and gas industry.

Online articles

The library provides access to a range of articles in full text from leading business, finance and management journals. Access to articles is provided to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Articles are available to logged-in ICAEW members, ACA students and other entitled users.

Articles and books in the Library collection

To find out how you can borrow books from the Library please see our guide to book loans. You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

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