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Disclosure of provisions for decommissioning costs in annual reports of oil and gas companies: A content analysis and stakeholder views

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  • Abdo, Hafez
  • Mangena, Musa
  • Needham, Graham
  • Hunt, David

Abstract

This study examines the extent of compliance with accounting disclosure requirements relating to provisions for decommissioning costs by oil and gas companies. We also investigate the views of stakeholders on the reporting practices of these companies. Using a content analysis approach, our findings reveal that compliance is substantially high, but companies tend to take a tick-box approach providing only minimum disclosure requirements. In semi-structured interviews, we find that disclosure decisions were driven by concerns about the credibility of information due to complexities in the accounting processes, regulatory requirements, lack of information demand and proprietary costs. These findings have policy implications.

Suggested Citation

  • Abdo, Hafez & Mangena, Musa & Needham, Graham & Hunt, David, 2018. "Disclosure of provisions for decommissioning costs in annual reports of oil and gas companies: A content analysis and stakeholder views," Accounting forum, Elsevier, vol. 42(4), pages 341-358.
    • Handle: RePEc:eee:accfor:v:42:y:2018:i:4:p:341-358
    DOI: 10.1016/j.accfor.2018.10.001
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    4. Tsalavoutas, Ioannis & Tsoligkas, Fanis & Evans, Lisa, 2020. "Compliance with IFRS mandatory disclosure requirements: A structured literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
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    6. Atkinson, Giles & Hamilton, Kirk, 2020. "Sustaining wealth: simulating a sovereign wealth fund for the UK’s oil and gas resources, past and future," LSE Research Online Documents on Economics 103564, London School of Economics and Political Science, LSE Library.
    7. Atkinson, Giles & Hamilton, Kirk, 2020. "Sustaining wealth: Simulating a sovereign wealth fund for the UK's oil and gas resources, past and future," Energy Policy, Elsevier, vol. 139(C).
    8. Stefania Camoletto & Laura Corazza & Simone Pizzi & Erica Santini, 2022. "Corporate Social Responsibility due diligence among European companies: The results of an interventionist research project with accountability and political implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1122-1133, September.

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