Recognition of losses to impairment of assets: impairment in oil operation and production assets
AbstractLosses to impairment of assets are placed in the context that assets cannot be registered above their recoverable amount, through use or sale of by the company. In the oil sector, the representativeness of exploration and production assets is relevant and meaningful. Therefore, the practice in the industry is not new and dates of the 70’s. Moreover, oil companies are obligated to publish additional information about their typical activities. Thus, the purpose is to analyze how this additional information about oil exploration and production are related by oil companies to impairment losses of E&P assets. We conducted a regression with panel data, using 212 observations of 53 oil companies for the period from 2005 to 2008. Findings suggest that the variables: price per barrel, reserves proved undeveloped, reserves x production ratio, development expenditures incurred, valuation standard of reserves and earnings per barrel are relevant to the recognition of loss to the impairment of E&P assets. The scarcity of empirical research allows importance to this study, but it has limitations and its findings remain restricted to the sample, variables and econometric tool used.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Fucape Business School in its journal Brazilian Business Review.
Volume (Year): 8 (2011)
Issue (Month): 2 (April)
Pages: 66 – 91
Contact details of provider:
Postal: Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES
Phone: +55 27 4009-4408
Fax: +55 27 4009-4422
Web page: http://www.bbronline.com.br/
More information through EDIRC
Impairment; recoverable value; panel data; E&P assets.;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alciatore, Mimi & Easton, Peter & Spear, Nasser, 2000. "Accounting for the impairment of long-lived assets: Evidence from the petroleum industry," Journal of Accounting and Economics, Elsevier, vol. 29(2), pages 151-172, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adriana Gasparino).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.