The Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) that are now effective for financial reporting applicable to the fiscal year ending December 31, 2016 (for those companies with fiscal years beginning after December 31, 2015).
Sharp declines in energy prices are driving Permian Basin oil and gas companies to reduce costs and attain greater efficiencies. Sales tax audits and joint-interest billing audits are among accounting-related actions area companies can take to attain those savings and greater efficiencies.
Oil and gas companies operate in a capital-intensive but cyclical industry, an industry where companies need to reduce costs and seek greater efficiencies whenever international oil or gas prices decline. That cost-cutting and efficiency emphasis needs to encompass property tax valuations.
“JOBS Act Offers Benefits for Private Companies Seeking Greater Investor Support” by Laura Roman & Dale Jensen for Midland Reporter-Telegram (March 10, 2013)
“Five-Year Outlook for Local Oil and Gas Industry Holds Promise” by Dale Jensen & Trey Hunt for Fort Worth Business Press (January 14, 2013)