SEC MODERNIZES OIL AND GAS REPORTING Anonymous Petroleum Accounting and Financial Management...

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SEC MODERNIZES OIL AND GAS REPORTING Anonymous Petroleum Accounting and Financial Management Journal; Spring 2009; 28, 1; Accounting & Tax pg. 18Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
	
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Petroleum Accounting and Financial Management Journal; Spring 2009; 28, Accounting & Tax1; 
pg. 18
Reproduced with permission of the copyright owner.  Further reproduction prohibited without permission.Reproduced with permission of the copyright owner.  Further reproduction prohibited without permission.Reproduced with permission of the copyright owner.  Further reproduction prohibited without permission.

David · Accepted Answer

Commentary reports on the articles 
Oil and gas reporting 
For the organizations that are operating in the gas and oil exploration and production 
sector, there are set of new rules implemented by Securities and Exchange Commission. There 
has always been a need to modernize the reporting mechanism for these organizations and hence 
the changes in the rules are due for long. The changes are mainly in the disclosures that are 
required by these organizations to be given to the investors and potential investors. The change 
would be a complete shift in the way the reporting would be done and hence the organizations 
have to work a lot from this year to implement the changes as per the new requirement.  
The biggest reason for the change in the standards is to ensure standardization in the 
reporting standards all across the world. There have been many suggestions and concerns 
regarding the reporting standards. Since most of the countries have their own standards for 
reporting purposes, it is very difficult to compare two different organizations from different 
countries. And with the increase in globalization, it is mandatory for the investors to look at the 
reports provided by the organizations so that they can decide on the organizations to invest into. 
Also for lenders it is nearly impossible to understand their financial statements. Hence this 
change would try to converge to the global standards 
These are the main changes according to the new rule: 
 Now the organizations have to disclose the reserves in the area of operation.

SEC MODERNIZES OIL AND GAS REPORTING Anonymous Petroleum Accounting and Financial Management Journal; Spring 2009; 28, 1; Accounting & Tax pg. 18 Reproduced with permission of the copyright owner....

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