PIRON

 

IFRS for the Energy Industry

Duration: 2 Days

This valuable programme answers questions such as:

1. What adjustments could be necessary for energy companies facing adoption of IFRS?
2. How are rules on composite asset accounting and retirement obligations applied?
3. What choices are available in accounting for energy generation, transmission and distribution?
4. When must an entity other than a subsidiary be consolidated into a parent entity's financial statements?
5. How should accounting policies be established when specific guidance does not exist?
6. When are energy contracts accounted for as derivatives?
7. How often is impairment testing required?
8. What are major IFRS vs. US / Canadian GAAP differences affecting the energy sector?
9. What issues/ adjustments arise as a result of rate regulation?

Course Summary

This two-day course examines in detail international accounting issues and their effect on energy companies.

Course Benefits

  • Make the adjustments necessary for energy companies to adopt IFRS
  • Utilise rules on composite asset accounting and retirement obligations
  • Understand the choices in accounting for energy generation, transmission and distribution
  • Learn how to establish revenue recognition policies
  • Comply with the requirements for consolidation of an entity in the parent’s consolidated financial statements
  • Determine when energy contracts are accounted for as derivatives
  • Comprehend the advantages and disadvantages of utilizing hedge accounting, and assess the impact upon the financial statements
  • Understand those major IFRS vs. US / Canadian GAAP differences affecting the energy sector

Teaching Method

  • Identification of critical issues in energy accounting
  • Succinct examples and cases that illustrate classification and accounting for energy-related transactions
  • Exercises to illustrate the accounting for risk management transactions (e.g. hedging)
  • Brief comparisons of IFRS and Canadian/US GAAP
  • All participants receive copies of the presentation slides and other course materials

Course Summary

Topics, presented through the use of case studies, examples, exercises, and illustrative financial statements, include:
  • Impact of first-time adoption of IFRS
  • Recently issued standards, interpretations and their impact on energy companies
  • Proposed IFRS changes that will affect energy companies
  • Production sharing arrangements vs. concession rents
  • Property, plant and equipment
  • Contributed capital
  • Borrowing costs
  • Intangible assets
  • Provisions, contingent liabilities and contingent assets
  • Impairment of assets
  • Asset retirement obligations
  • Transportation agreements
  • Customer acquisition costs
  • Long-term fuel purchase and sale contracts
  • Derivative treatment for energy contracts (including 'own use' exemption)
  • Tolling contracts
  • Emission rights trading
  • Transmission contracts and regulated access
  • Service concession arrangements, rights of use and lease accounting
  • Revenue recognition issues
  • Business combinations and consolidation issues
  • Risk management via trading and hedge accounting
  • 'Stand alone' and 'embedded' derivatives IFRS vs. US / Canadian GAAP.

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