IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)


IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)

Department: accounting project topics | Type: Project topics and materials | Format: Ms Word, PDF | Attribute: Documentation Only | Pages: 66 Pages | Chapters: 1-5 chapters | Price: ₦ 3,000.00

1,522 marked this research material reliable.
Call or whatsapp: +2347063298784 or email: info@researchcub.info
IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)
IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)

ABSTRACT

This study examines the impact of oil and gas accounting and reporting on the organisation and to the Nigerian accounting practice using Shell Development Petroleum Company as a case study. The study was conducted using the Chi-square. The elements were selected by means of random and stratified sampling technique. Data were gathered from primary and secondary sources. Data collected were presented using tables and analyzed using the Chi-square analysis. It was found from the study that Oil and gas accounting practice in Nigeria is standardized in line with International Financial Reporting Standard; the challenges facing oil and gas accounting in Nigeria is low while the prospect of oil and gas accounting is high

The study recommended that the International Financial Reporting Standard be adopted by countries that are yet to standardized their oil and gas accounting information. It also recommended that oil and gas accounting software be developed in line with the IFRS requirements and standards to ease the complexities involved in the nature of oil and gas accounting.


CHAPTER ONE

INTRODUCTION

1.0     INTRODUCTION

Accounting regulatory bodies usually formulate industry specific standards when an industry has peculiar characteristic of accounting for banks and non-bank financial institutions.

The oil and gas industry is one of such industries that has specific accounting standards. This can be attributed to its peculiarity interms of high capital  requirement, earning volatility, regulation, type of business ownership, taxation, non-correlation between the amount of investment made and returns obtained (Wright and Hallun et al, 2008)  and high sensitive to risk - price risk and foreign exchange risk.

Before 2012 when the International Financial Reporting Standard (IFRS) was adopted by exploration companies in Nigeria, Nigerian companies in the upstream sector prepared their financial statements in line with the statement accounting standard 14 (accounting in the petroleum industry; upstream activities) and SAS 17 (accounting in the petroleum industry) formulated by the Nigerian Accounting Standard Board.

With its adoption of IFRS, Nigeria joined over 100 countries that either use or have adopted the accounting guidelines as stipulated by the International Accounting Standard Board (IASB). This will ensure harmony and easy comparison of financial statements. This is particularly useful in the oil and gas industry considering that it is one of the most global industries. The adoption of a common accounting framework also widens access to investment opportunities.

 

1.1     BACKGROUND OF THE STUDY

The oil and gas industry is one of such industries that has specific accounting standards. This is as a result of its peculiarity in terms of high capital requirement, earnings violability, regulation, type of business ownership, taxation, non-correlation between the account of investment made and returns obtained (Wright and Gullen et al, 2008) and high sensitivity to risk like price risk and foreign exchange risk etc.

Therefore, when the international Financial Reporting Standards (IFRS) was adopted by exploration companies in Nigeria, it became imperative for oil and gas companies in the sector to prepare financial statements in line with the statement of accounting standards.

Upstream oil and gas organizations must meticulously record, track, distribute and report sales of oil and gas and other products. Accurate and timely oil and gas revenues accounting require tracking complex contracts and owner lease agreements. It must also reflect joint venture and capital expenditure accounts among others.

The nature of the complexity of the oil and gas operations makes the nature of its accounting reporting even more complex by new challenges such as horizontal drilling etc.

The research, therefore, intends to explore the nature of oil and gas accounting in Nigeria, challenges and solutions.

 

1.2     STATEMENT OF THE PROBLEM

The complex nature of the operations of the upstream oil and gas industry makes the oil and gas accounting more complex in nature. However, the International Financial Reporting Standards (IFRS) requires that oil and gas companies in the upstream sector prepare their financial statement in-line with the statement of accounting standards 14 (accounting in the petroleum industry; upstream activities) andSAS 17 (accounting in petroleum) formulated by the Nigerian Accounting Standard Board. This is as a result of the guidelines stipulated by the International Accounting Standard Board (IASB)

However, oil and gas accounting is made increasingly difficult by new challenges and risks such as horizontal drilling, price risk, foreign exchange risk etc. Research work into the various accounting standards needed in this particular industry have not been detailed and thorough.

This research seeks to investigate the practice of oil and gas accounting in Nigeria, understand its operation and determine what extent it has been standardized to help move the industry forward to international standards

 

1.3     OBJECTIVES OF THE STUDY

The study seeks the following objectives:

1.         To determine if oil and gas accounting is standardized in Nigeria

2.         To examine the challenges of oil and gas accounting in Nigeria and proffering solutions

3.         To evaluate the prospects of oil and gas accounting in Nigeria.

 

1.4     RESEARCH QUESTIONS

The following research questions were formulated:

1.         Is oil and gas accounting standardized in Nigeria?

2.         Are there challenges in oil and gas accounting in Nigeria?

3.         Are there prospects for oil and gas accounting in Nigeria?

 

1.5     RESEARCH HYPOTHESIS

Hypotheses are usually gotten from research questions/problems and can be regarded as tentative solutions to research questions. Therefore, the researcher will test the following hypotheses

H1        Oil and gas accounting practice is standardized in Nigeria

H2        There are no challenges in oil and gas accounting in Nigeria

H3        Oil and gas accounting has huge prospects in Nigeria

1.6     SIGNIFICANCE OF THE STUDY

1.         It will help oil and gas companies know what relevant accounting standards they need to be up to standard in the Nigerian reporting environment.

2.         it will help relevant agencies know what is expected from oil and gas companies in terms of accounting  reporting

3.         It shall serve as reference material for accounting professionals and practitioners seeking more knowledge.

4.         It shall serve as a basis for further study.

 

1.7     SCOPE OF THE STUDY

The study seeks to evaluate the impact of oil and gas accounting practice in Nigeria and Shell Nigeria was used as the case study for this research

IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)

Additional Information

  • The Project Material is available for download.
  • The Research material is delivered within 15-30 Minutes.
  • The Material is complete from Preliminary Pages to References.
  • Well Researched and Approved for supervision.
  • Click the download button below to get the complete project material.

Frequently Asked Questions

In-order to give you the best service available online, we have compiled frequently asked questions (FAQ) from our clients so as to answer them and make your visit much more interesting.

We are proudly Nigerians, and we are well aware of fraudulent activities that has been ongoing in the internet. To make it well known to our customers, we are geniune and duely registered with the Corporate Affairs Commission of the republic of Nigeria. Remember, Fraudulent sites can NEVER post bank accounts or contact address which contains personal information. Free chapter One is always given on the site to prove to you that we have the material. If you are unable to view the free chapter 1 send an email to info@researchcub.info with the subject head "FREE CHAPTER 1' plus the topic. You will get a free chapter 1 within an hour. You can also check out what our happy clients have to say.


Students are always advised to use our materials as guide. However, if you have a different case study, you may need to consult one of our professional writers to help you with that. Depending on similarity of the organization/industry you may modify if you wish.


We have professional writers in various disciplines. If you have a fresh topic, just click Hire a Writer or click here to fill the form and one of our writers will contact you shortly.


Yes it is a complete research project. We ensure that our client receives complete project materials which includes chapters 1-5, full references, questionnaires/secondary data, etc.


Depending on how fast your request is acknowledged by us, you will get the complete project material withing 15-30 minutes. However, on a very good day you can still get it within 5 minutes!

What Clients Say

Our Researchers are happy, see what they are saying. Share your own experience with the world.
Be polite and honest, as we seek to expand our business and reach more people. Thank you.

A Research proposal for impact of oil and gas accounting on accounting practice in nigeria: (a study of shell nigeria plc):
Reviews: A Review on impact of oil and gas accounting on accounting practice in nigeria: (a study of shell nigeria plc), accounting, nigeria, impact project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
Accounting regulatory bodies usually formulate industry specific standards when an industry has peculiar characteristic of accounting for banks and non-bank financial institutions. The oil and gas industry is one of such industries that has specific accounting standards. This can be attributed to its peculiarity interms of high capital requirement, earning volatility, regulation, type of business ownership, taxation, non-correlation between the amount of investment made and returns obtained (Wright and Hallun et al, 2008) and high sensitive to risk - price risk and foreign exchange risk... accounting project topics

IMPACT OF OIL AND GAS ACCOUNTING ON ACCOUNTING PRACTICE IN NIGERIA: (A STUDY OF SHELL NIGERIA PLC)

Project Information

Share Links

Download Post
Download Post

Search for Project Topics

Project topics in Departments

Do you need a writer for your academic work?