BusinessCompany NewsUS oil firms face scrutiny over accounts

US oil firms face scrutiny over accounts

The Securities & Exchange Commission is looking to clamp down on oil companies that overbook the value of their reserves.

Link: US oil companies face double taxation threat

In the past, oil companies were put under pressure to overbook reserves in order to improve market conditions and increase their borrowing power, according to the FT

But following the collapse of Enron, and increased scrutiny over the valuation of assets, oil companies could be forced to better explain the methodology used to arrive at the figures, which could see millions of pounds wiped off the value of their assets.

Companies are already being asked by the SEC to explain in a letter how they calculated this value, but this could just be a ‘good faith’ attempt by the watchdog before more stringent rules are considered.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor