A critical analysis of the use of accounting standards' comment letters as lobbying tools by extractive industry firms.

Ayodele Oshokamere Asekomeh, Alex Russell, Heather Tarbert

Research output: Contribution to journalArticle

Abstract

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.
Original languageEnglish
Pages (from-to)55-76
Number of pages22
JournalPetroleum Accounting and Financial Management Journal
Volume25
Issue number3
Publication statusPublished - 2006
Externally publishedYes

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Lobbying
Accounting standards
Extractive industries
Costs
Income
Expenditure
Managers

Cite this

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A critical analysis of the use of accounting standards' comment letters as lobbying tools by extractive industry firms. / Asekomeh, Ayodele Oshokamere; Russell, Alex; Tarbert, Heather.

In: Petroleum Accounting and Financial Management Journal, Vol. 25, No. 3, 2006, p. 55-76.

Research output: Contribution to journalArticle

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