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An exposure draft of a proposed audit and accounting guide on "Oil and Gas Reserve Information Required by Regulation S-X" accompanies this letter. The proposed guide discusses the auditing procedures to be applied to oil and gas reserve information that is required by the SEC to be included in the notes to the financial statements of entities with oil and gas producing activities . The proposed guide originally was developed because of FASB Statement no . 19 requirements and amendments to Regulation S-X by the Securities and Exchange Commission (ASR nos. 253 and 257) . The FASB has amended FASB Statement no . 19 to permit oil and gas reserve quantity information to be disclosed as supplemental information outside of the basic financial statements. The SEC has not indicated that it will similarly modify amendments to Regulation S-X that require certain reserve quantity and value information to be included in the notes to the financial statements of entities with oil and gas producing activities, nor has it indicated that it will permit the reserve information to be marked "unaudited." This proposed guide is being exposed for public comment at this time to encourage the timely consideration of the auditing procedures that an auditor should apply when oil and gas reserve information is included in the notes to the financial statements. It does not impose any disclosure requirements concerning reserve information. Two issues are not discussed in the proposed guide because of the timing of recent developments—the procedures that might be appropriate for oil and gas reserve quantity information that is disclosed as supplemental information as provided by FASB Statement no. 25, and the auditor's reporting responsibilities under the varying circumstances contemplated by the applicable disclosure provisions of both FASB Statement no. 25 and ASR nos. 253 and 257. The proposed guide provides that if oil and gas reserve information is included in the notes to the financial statements as required by ASR nos. 253 and 257, the auditor ordinarily should obtain a consulting reservoir engineer's opinion covering all, or in certain cases a portion of, the reserves to satisfy the requirement that he obtain sufficient, competent evidential matter concerning information included in the financial statements.

ISBN

ed79-04-13t

Publication Date

1979

Relational Format

Book

Keywords

Gas industry -- United States -- Accounting; Petroleum industry and trade -- United States -- Accounting

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1979, April 13

Proposed audit and accounting guide : Oil and gas reserve information required by regulation S-X;Oil and gas reserve information required by regulation S-X

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