Scope

OIAC was established in 1984 in the United Kingdom (UK), to play a key role in representing the views of the oil and gas industry in various accounting forums and to give guidance on the interpretation and application of accounting standards to the industry. The scope of OIAC extends to external financial accounting considerations specific to the industry for companies which are required to prepare their financial statements in accordance with UK GAAP.

Industry sectors primarily covered

To date, accounting issues specific to the oil and gas industry have related principally to the upstream sector. This focus is reflected in OIAC's present membership.

The committee monitors its programme and will seek to augment its membership, where appropriate, to meet requirements for expertise and representation when specific issues arise relating to constituents of the oil and gas industry other than the upstream sector.

Relationship to the ASB

The Accounting Standards Board (ASB) is the primary accounting standard setting body in the UK. As well as producing and updating accounting standards it reviews output of any of the SORP-making bodies.

To secure recognition, SORP-making bodies are expected to meet the criteria laid down by the ASB and to develop their SORP proposals in conformity with the ASB's code of practice, given in the ASB Statement 'SORPs: Policy and Code of Practice', available on the ASB website (www.asb.org.uk). This statement superseded the previous document, the ASB's 'Policy for the Development of SORPs' on 27 July 2000.

Applicability of guidance notes, SORP's etc

OIAC provides guidance on recommended practice which preparers of accounts of companies with interests in oil and gas exploration and production activities are encouraged to follow. The guidance in the form of SORP's or Guidance Notes is intended to codify best practice in the sector and to provide specific guidance on the application of Standards issued by the ASB to the oil & gas industry.

For accounting periods beginning on or after 24 December 2001, Financial Reporting Standard 18, Accounting Policies, requires disclosure for entities falling within the scope of a SORP whether the SORP has been followed and give details of and explanations for any departures.

Constitution of OIAC

Fuller details about OIAC's establishment and its constitution are included in our Terms of Reference which were issued on 16 October 1996. You may download a copy.

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Membership

The current membership of the committee is set out in People. If you need to contact OIAC then please email the Secretary at OIAC Secretary at any time.

Registration

To register on OIAC's mailing list please register via the 'Join List' button on the Home page.