Global Standards for the world economy

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IASB meeting summaries

 IASB June 2007


The Board held its fourth education session on the extractive activities research project.

In the first part of the session, John Etherington from the Society of Petroleum Engineers (SPE) Oil and Gas Reserves Committee gave an update on a joint project with the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) to compare and, where possible, bring into convergence the petroleum and minerals definitions and classification systems. Changes made have resulted in substantial consistency between the two systems. The next steps planned are to develop a �mapping document� explaining the similarities between the systems and the terminologies used within each of the industries. The Board thanked the SPE/CRIRSCO convergence team for the excellent work they have done and was encouraged by the results so far.

In the second part of the session, the project team reported on the findings of a survey conducted to develop a better understanding of the information needs of users involved in analysing oil and gas and minerals companies. Four analysts took part in the discussion. The user survey was based on 34 interviews with buy-side and sell-side analysts, debt rating agencies, lenders and venture capitalists from Australia, Canada, South Africa, the United Kingdom and the United States who specialise in analysing these companies. The main findings were that:

  • there is limited interest in placing a valuation of reserves and resources (at current value or fair value) on the balance sheet; and
  • analysts generally would prefer disclosure of the main valuation inputs so that those inputs could be incorporated into their own valuation models.
  • It was agreed that the project team should, as part of the development of the discussion paper, continue research on:
  • issues such as unit of account and asset recognition that might affect the measurement model;
  • current value and disclosure-based models as proposed in the agenda papers for this meeting; and
  • decision-useful financial statement disclosures to meet the needs of users of oil and gas and mineral reserve information.

The Board again thanked the users and other industry participants for their contribution to the project to date.


Date: 6/22/2007