Disclosure of Provisions for Decommissioning Costs in Annual Reports of Oil and Gas Companies: A Content Analysis and Stakeholder Views

Accounting Forum, Forthcoming

41 Pages Posted: 9 Jan 2019

See all articles by Hafez Abdo

Hafez Abdo

Sheffield Hallam University

Musa Mangena

University of Nottingham Business School

Graham Needham

Nottingham Trent University - Nottingham Business School

David Hunt

Independent

Date Written: October 26, 2018

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.

Keywords: Disclosure Decisions; Compliance; Decommissioning Costs; Factors of Disclosure; International Accounting Standards, Oil and Gas Sector

Suggested Citation

Abdo, Hafez and Mangena, Musa and Needham, Graham and Hunt, David, Disclosure of Provisions for Decommissioning Costs in Annual Reports of Oil and Gas Companies: A Content Analysis and Stakeholder Views (October 26, 2018). Accounting Forum, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3306773

Hafez Abdo (Contact Author)

Sheffield Hallam University ( email )

City Campus
Howard Street
Sheffield, S1 1WB
United Kingdom

Musa Mangena

University of Nottingham Business School ( email )

United Kingdom

Graham Needham

Nottingham Trent University - Nottingham Business School ( email )

Nottingham
United Kingdom

David Hunt

Independent ( email )

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