TY - JOUR
T1 - A critical analysis of the use of accounting standards’ comment letters as lobbying tools by extractive industry firms
AU - Asekomeh, Ayodele Oshokamere
AU - Russell, Alex
AU - Tarbert, Heather
PY - 2006
Y1 - 2006
N2 - Current international GAAP allows companies to choose either the full cost (FC) or the successful efforts (SE) method to report the results of their exploration and production activities. These two methods are conceptually different and can produce radically divergent reported results. Since the accounting method adopted determines the timing, recognition, and amortization of exploration and development costs, it follows that method of choice inherently confers some discretionary control over capitalized expenditures and thereby empowers managers to engage in income management.
AB - Current international GAAP allows companies to choose either the full cost (FC) or the successful efforts (SE) method to report the results of their exploration and production activities. These two methods are conceptually different and can produce radically divergent reported results. Since the accounting method adopted determines the timing, recognition, and amortization of exploration and development costs, it follows that method of choice inherently confers some discretionary control over capitalized expenditures and thereby empowers managers to engage in income management.
M3 - Article
VL - 25
SP - 55
EP - 76
JO - Petroleum Accounting and Financial Management Journal
JF - Petroleum Accounting and Financial Management Journal
SN - 1554-2904
IS - 3
ER -