SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING
COURSE: Accounting 400 –Introduction to Energy Accounting
PROFESSOR: Richard Pitre
TERM: Fall 2017
TEXT: AICPA: Entities with Oil and Gas Producing Activities, January 1, 2014.
OFFICE LOCATION: JESSE H. JONES SCHOOL OF BUSINESS, Rm. 368
TELEPHONE: (713) 313-7717, E-mail: pitre_rx@tsu.edu
Office Hours: Tuesdays & Thursdays: 12:00 PM – 1:00 PM
2:15 – 4:00 PM
By appointment
PREREQUISITE: Accounting 231
Please review Chapters 1-5 of the Financial Accounting Textbook
For information about the CPA Examination: https://www.tsbpa.state.tx.us/
http://careers.chevron.com/disciplines/index_of_disciplines/accounting/
The Texas Southern University (TSU) complies with non-discriminatory policies for students with disabilities under the guidelines of the Americans with Disabilities Act (ADA) of 1990, the ADA Amendment Act of 2008, and the Rehabilitation Act of 1973 (Section 504). These Acts mandate equal opportunities for qualified individuals with disabilities in higher education public facilities, programs, activities and services. Under these federal guidelines, the University is required to protect the civil rights of students with disabilities; maintain the student’s confidentiality; and provide reasonable academic accommodations/auxiliary aids to students with documented disabilities. Any student who may need accommodations based on the impact of a disability should contact the Office of Disability Services (ODS) at 713 313-7691713-313-4210. The ODS is located in the Student Health Center, Room 140. (http://students.tsu.edu/departments/office-of-disability-services/)
OBJECTIVE:
The objective of this course is to provide a fundamental understanding of the Energy industry and to specifically train students in the area of Financial Reporting and Tax Practices of the energy industry. The course will provide guidance in accounting for cost activities relating to, acquisition of mineral interest in properties, exploration, development, and production of oil and gas.
“Oil and natural gas together make petroleum. Petroleum, which is Latin for “rock oil,” is a fossil fuel, meaning it was made naturally from decaying prehistoric plant and animal remains. It is a mixture of hundreds of different hydrocarbons molecules containing hydrogen and carbon that exist sometimes as a liquid (crude oil) and sometimes as a vapor (natural gas). To determine the existence of petroleum at a particular site it is necessary to drill an exploratory well. Over the past 150 years, more than two million such wells have been drilled. This process is complex and risky, often requiring huge amounts of investment. In order to reduce the number of exploratory wells drilled, scientific methods are used to determine the most promising sites.”http://www.instituteforenergyresearch.org/gas/us-energy-facts/
Outline
I. AABE Guest – Mr. Chris Odom August 29
II. Review of Basic Accounting August 31
Annual Reports https://www.sec.gov/Archives/edgar/data/34088/000003408816000065/xom10k2015.htm
http://www.shell.com/investors/financial-reporting/sec-form-20-f.html
III. AABE Guest – Mr. Chris Odom August 31
IV. Introduction to the Energy Industry September 5
Videos
https://www.youtube.com/watch?v=_8VqWKZIPrM
https://www.youtube.com/watch?v=8YHsxXEVB1M
http://www.youtube.com/watch?v=IC40mZHu2ZQ
Oil and Gas Links
https://www.google.com/?gws_rd=ssl#q=Upstream+Oil+and+Gas+Risk
V. Chapter 1: Overview of the Industry September 7
Oil and Gas Accounting Terminology Text, page 215 September 7
https://en.wikipedia.org/wiki/List_of_acronyms_in_oil_and_gas_exploration_and_production
https://cogcc.state.co.us/COGIS_Help/glossary.htm
http://www.investopedia.com/articles/stocks/09/oil-drillers-cracked-up.asp
http://www.investopedia.com/articles/07/oil_gas.asp
VI. Oil and Gas Trading –Aspect Enterprise Solutions September 21
VII. Examination 1 – 200 points (Modules I. – V.) September 26
VIII. Chapter 2: Primary Business Activities of the Industry September 28
IX. Chapter 3: Oil and Gas Ownership Arrangements September 28
X. Chapter 4: Successful Efforts
· Acquisition Cost October 3
· Exploration Cost October 5, 10
· Development Cost October 12,17,19,24
Interest Capitalization
DD&A
Asset Retirement
· Production October 26,31
· Impairment November 2
· Joint Interest November 7,9
· Disclosures November 14,17
http://heincpa.com/wp-content/uploads/2012/11/JoeBlice_Disclosures-for-AICPA-Conference_11-12.pdf
https://www.sec.gov/Archives/edgar/data/34088/000003408816000065/xom10k2015.htm
Aspect four more days
| Assessment | Points | |
| Examination #1 | 200 | September 19 |
| Quizzes – Unannounced | 100 | |
| Topic 12: Oil and Gas Producing Activities Project | 100 | Due Date:
November 22 |
| Comparative Analysis (Successful-Efforts, Full Cost, & IFRS) Project
Significant Differences: Activities US GAAP (Successful Efforts) Full Cost IFRS US GAAP — Full cost US GAAP — Successful efforts IFRS |
100 | Due Date:
November 30 |
| Fail Value Measurement in the Oil and Gas Industry
4-5 pages (an approximation) report |
100 | December 1 |
| Oil & Gas Trading Project
Aspect Enterprise Solutions |
200 | Due Date: TBA |
| Sub-total for Exams and Quizzes | 800 | Points in excess of 600 in exams, assignments and quizzes are for missed activities. |
| From exams and assignments | 600 | Points in excess of 600 in exams, assignments and quizzes are for missed activities. |
| Final Examination
Comprehensive Final Examination December 12, 2017 3-5 pm. |
400 | |
| Total Points | 1,000 | |
| Grading Scale – Based on 1,000 Course Points | ||
| A 90% | 900 | |
| B 80% | 800 | |
| C 70% | 700 | |
| D 60% | 600 |
Make-Up (The extra 200 points in quizzes and assignments are for missed work.)
DROPS, ADD, PREREQUISITES, ETC., ARE HANDLED ACCORDING TO UNIVERSITY AND SCHOOL OF BUSINESS RULES AND REGULATIONS.
YOU MAY FIND THIS INFORMATION IN THE STUDENT HANDBOOK AVAILABLE IN BUSINESS STUDENT SERVICES.
BUSINESS STUDENT SERVICES IS LOCATED IN ROOM 117, JESSE H. JONES SCHOOL OF BUSINESS.
NO BEEPERS, CELL PHONES AND OTHER ELECTRONIC DEVICES ARE ALLOWED TO BE AUDIBLE IN THE CLASS. YOU WILL BE SUBJECT TO EXPULSION.
ALL DOCUMENTS SUBMITTED BY STUDENTS WILL BE INSPECTED FOR PLAGIARISM. ALL VIOLATORS OF COPYRIGHT RULES WILL BE PUNISHED ACCORDING TO UNIVERSITY AND SCHOOL OF BUSINESS RULES AND REGULATIONS.
CLASS ATTENDANCE IS CRITICAL TO THE SUCCESS OF THIS COURSE.
All Assignments Are Posted on Blackboard. Email communication is through your TSU email address.
http://www.shell.com/investors/financial-reporting/sec-form-20-f.html
Comprehensive Final Examination May 11, 2017 1-3 pm.
http://www.youtube.com/watch?v=IC40mZHu2ZQ
http://www.youtube.com/watch?v=xZ1HIBIIJU0
http://www.youtube.com/watch?v=CXmmlIrwR20
http://www.youtube.com/watch?v=_hwzJUDWIQQ
