How accountants treat ownership of reserves could make the difference between success and failure for President Peña's energy reform, providing Congress approves it as proposed.
Oil companies want to tell their investors they've acquired reserves for future production. Depending on how agreements are negotiated, companies just might be allowed to record any oil and gas they find or produce in conjunction with Pemex as reserve holdings -- even though under Mexican law, the state will still own the reserves. (The argument is found in a Citibank report cited in the August 14, 2013 New York Times.)
Will the US Securities and Exchange Commission (SEC) decide that its accounting rules allow the reserves a firm finds or develops with Pemex to be included in the firm's financials? (The rule is that the reserves can be booked as such if the reserves equal the value of the cost recovery and revenue earned, per the above cited article.) If firms can report the reserves and the reform is approved, "the results will be revolutionary for the country", according to the Citi report.
Oil companies want to tell their investors they've acquired reserves for future production. Depending on how agreements are negotiated, companies just might be allowed to record any oil and gas they find or produce in conjunction with Pemex as reserve holdings -- even though under Mexican law, the state will still own the reserves. (The argument is found in a Citibank report cited in the August 14, 2013 New York Times.)
Will the US Securities and Exchange Commission (SEC) decide that its accounting rules allow the reserves a firm finds or develops with Pemex to be included in the firm's financials? (The rule is that the reserves can be booked as such if the reserves equal the value of the cost recovery and revenue earned, per the above cited article.) If firms can report the reserves and the reform is approved, "the results will be revolutionary for the country", according to the Citi report.
No hay comentarios:
Publicar un comentario