International Financial Reporting & Treasury Risk Management for the Oil & Gas Industry

Why Attend

This Essential Guide to IFRS and Risk Management training course will provide delegates with the essential knowledge and skills to manage the Treasury effectively thereby improving liquidity, investment returns and international cash-flow as well as risk management. This highly interactive training course will also develop an improved understanding of International Financial Reporting enabling reports to be written in accordance with IFRS and evaluated to improve decision making.

The Treasury & Risk Management function and Financial Reporting are essential to the success and sustainability of all leading corporate organizations. Never has this been more true, given the ever increasing pace of change in regulation, compliance, technology and financial risk within the Oil & Gas industry.

Treasury Management ensures sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks such as Credit Risk, Oil Price, Exchange Rate and Interest Rate Risk effectively. In addition, effective Treasury & Risk management will enable companies to make informed and better strategic decisions, providing the analysis, finance and risk assessment.

Financial Reporting develops an essential understanding of Oil & Gas accounting, reporting and performance measurement issues and practices. It develops your ability to prepare, use and critically evaluate information, applying specialist industry knowledge and relevant analytical skills.

Overview

Course Outline

Schedule & Fees

Course Methodology

In order to ensure skill development as well as improved knowledge, this training course will be conducted along with workshop principles using real life case studies and interactive worked examples from the Oil & Gas industry. Participants will be actively engaged, individually and as part of a group, in their discussion, analysis and evaluation throughout this training course.

Participants will also be given a detailed set of handouts in hard and soft copy to enable them to review the topics covered at a later date.

Course Objectives

At the end of this training course, you will learn to:

Manage Cash; Liquidity & Working Capital to reduce finance costs and improve returns
Make informed Strategic Decisions
Determine and Implement the company’s Risk Management Strategy
Recommend Hedging and Risk Management Decisions
Improve the Corporate Governance of the organization
Apply International Financial Reporting Standards most relevant to the Oil & Gas industry
Analyze and evaluate financial reports to better meet the needs of users
Review and use publicly available information to benchmark the business performance of your company in the Oil & Gas industry

Target Audience

Given the importance of the Treasury & Risk Management and Financial Reporting & Analysis, this training course is suitable to a wide range of professionals but will greatly benefit:
⦁ Professionals who wish to up-date and improve their knowledge and skills of Treasury, Risk management and Finance
⦁ Financial decision makers, whose techniques of decision making and analysis will be improved through attendance
⦁ Managers and those with financial responsibilities
⦁ Professionals acting upon the financial decisions of others, who will gain an appreciation for decision making thereby ensuring shared values within the organization
⦁ Professionals with an interest in finance and the latest market developments

Target Competencies

N/A

MODULE I - Treasury and Risk Management

DAY 1 :The Role of Treasury Management – An Overview

The Role & Scope of Treasury Management
Operation & Location of a Treasury Department – Cost or Profit Centre; Centralized or Decentralized
Cash & Liquidity Management
Working Capital Management
Capital / Finance Management
Risk Management

DAY 2: Cash & Liquidity Management – A Detailed Analysis

Cash Forecasts: Role & Preparation
Investment of Cash Surpluses to Maximize Return
Meeting Cash Calls and Short-Term Cash Shortages / Short Term Finance
Working Capital Management – Determining the Optimum Level
Multi-national & Group Cash Management
Cash Budgets: Process & Control

DAY 3: Financing and Capital Management

Strategic Objectives: Consolidation, Growth, M & A; Joint Ventures, Diversification etc
Financing Strategic Objectives / Long Term Finance (Public & Private Equity v Buyer & Supplier Debt)
Optimizing the Capital Structure to Minimize the Cost of Capital (WACC)
The Capital Asset Pricing Model (CAPM)
Capital Investment Appraisal – NPV; IRR, Payback
Capital Rationing: Internal & External

DAY 4: Risk Management

Identifying Risks and Uncertainties – Internal & External; Financial & Non-Financial
Measuring Risk – Volatility; Variance; Standard Deviation; Probability; Value at Risk
Determining the Risk Management Strategy – Assessing Impact and Probability
The 4 T’s – Tolerate; Terminate; Transfer; Treat
Internal Controls & Internal Auditing
Credit & Counterparty Risk Management

DAY 5: Currency, Interest Rate & Commodity (Oil Price) Risk Management

Forward Contracts and Forward Rate Agreements
Options – Calls & Puts; European & American
Futures – Market Correlation; Margin Payments, etc.
Swaps – Currency & Interest Rate Risk and Benefits
Foreign Currency Accounts other Internal Methods / Tactics
Foreign Currency Borrowing

MODULE II - International Financial Reporting Standards (IFRS) for the Oil & Gas Industry

DAY 6: The Oil and Gas Sector & Major Accounting Issues

The Oil & Gas Sector & the Macro-economic Factors

Commodity prices, currency fluctuations, interest rate risk and political developments and environmental risk

Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
Accounting Approaches

The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method

Introduction / Overview of IFRS in relation to the Oil & Gas Sector, with particular reference to:

IFRS 1: First-time Adoption of International Financial Reporting Standards
IFRS 6: Exploration for and Evaluation of Mineral Assets
IFRS 10: Consolidated Financial Statements
IFRS 11: Joint Arrangements
IAS 16: Property, Plant and Equipment
IAS 36: Impairment of Assets
IAS 37: Provisions, Contingent Liabilities and Contingent Assets
IAS 38: Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement – Superseded by IFRS 9 – was to be effective 2013 but now 2018

DAY 7: Evaluating the Performance and Identifying the Accounting Issues

Analysis of Financial Statements

Income Statements
Statement of Financial Position (Balance Sheet)
Cash-flow Statements

Identification & Evaluation of their Accounting Policies
DuPont Analysis – Evaluating and Improving Return On Equity (ROE)
Evaluation of their Share Price and Investment Performance
Case Study: BP, Chevron, Shell and SABIC

DAY 8: Accounting for Upstream Activities with Reference to IFRS

Reserves and Resources
Exploration and Evaluation
Revenue Recognition
Assets
Depletion, Depreciation & Amortization (DD&A)
Impairment of Development, Production and Downstream Assets
Examples: BP, Chevron & Shell

DAY 9: Joint Arrangements, Financial Instruments and Derivatives

Business Combinations, Joint Ventures & Production Sharing Agreements (PSAs)
Treasury Management Issues for Multi-nationals
The Use of Derivatives in the Oil & Gas Sector to manage the commodity, currency and interest-rate risks, etc.
British Airways Case Study – Hedging the Oil Price using Futures

DAY 10: Creative Accounting and Corporate Governance

Creative Accounting – Enron and Investor Protection
Leases – IFRS 16 (new standard)
Auditors and Reporting to Investors in the Oil and Gas Industry
External Audit Investigations and Reports

The Auditor’s ‘Opinion'
True and Fair
Sarbanes Oxley
Internal Audits

Ethical Issues
Corporate Governance

Government Regulation
Investor Confidence and Share Prices

Manila

Manila (Philippines)2025-12-15$4975

Kuala Lumpur

Kuala Lumpur (Malaysia)2026-03-16$4975