Oil And Gas Accounting In Upstream Sector In Nigeria: Practice, Challenges And Options: A Study Of Shell Nigeria Plc

ABSTRACT

Oil and gas industry play an important role in the Nigerian economy through revenue generation to the government, employment generation and being the major contributor to the growth of the Gross Domestic Product (Karikpo, 2010). Oil and Gas Companies, like other entities, are required to prepare and present their financial statements in accordance with Generally Accepted Accounting Practices and/or International Accounting Standards. Such financials are expected to be relevant, reliable and faithfully representing the financial position and performance of the affairs of the reporting entity at any particular point in time. Financial information is crucial for the economy and the quality of financial statements depends on the accounting standards on which they are based. Financial statement forms the basis on which economic and financial agents, as well as authorities take their decisions (Obara & Nangih, 2017). Accounting standards have a direct impact on supervisory work of DPR and National Assembly's oversight functions given that petroleum industry operator's account provides detailed overview of the liquidity, profitability and the financial status on the activity of the industry as a whole.