Significant Differences Between Accounting and Oil and Gas Operations and...

SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING AND OIL AND GAS trading operations AND THE CONVENTIONAL ACCOUNTING FOR MANUFACTURING OR MECHANIZE OPERATION. By Demoore Suleman ----------------------- Conventional Manufacturing Account 1.Definition: Manufacturing news report, the experimental condition I use to describe business organizations engaged in the manufacture of goods for sale. These company maintain a manufacturing account. 2. apostrophize method: Expenses argon the personify of unsold products and are describe as assets. These expenses include wages, electricity in offices out of doors of the factory (sales and marketing, global administrative offices) are reported immediately as expenses in the accounting period that they are used cost outside of the factory do not become part o the product cost. Under the accrual method of accounting, period cost such as selling, general and administrative expenses are reported in the income statement in the accounting period in which they are used up or explore. Variances from purchase are recorded at that time the raw materials are purchased and re classified into raw materials inventory, Accounting for rock oil and gas operation 1.

Definition : vegetable oil and Gas Account: The term is used to describe the books of account of companies involved in the exploration an emergence of crude oil and natural gas. 2. Cost Method Accounting for oil and gas operations follow one of two methods of financial accounting. a. Full Cost Method: All property acquisition exploration and development cost, even dry hole cost are capitalized as oil and gas properties. These cost represent fixed asset, amortized on a country by country basis using a unit of production method based on volume produced and remaining proved reserves. Acquisition and development activities are capitalized expenses irrespective of whether or not the activities resulted in the discovery of reserve. b. The undefeated effort (SE) method: allows a company to capitalize unless those expenses associated... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .