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

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.

Citation

Abdo, H., Mangena, M., Needham, G., & Hunt, D. (2018). Disclosure of provisions for decommissioning costs in annual reports of oil and gas companies: A content analysis and stakeholder views. Accounting Forum, 42(4), 341-358. https://doi.org/10.1016/j.accfor.2018.10.001

• Journal Article Type: Article
• Acceptance Date: Oct 5, 2018
• Online Publication Date: Oct 11, 2018
• Publication Date: 2018-12
• Deposit Date: Jan 23, 2020
• Publicly Available Date: Apr 12, 2020
• Journal: Accounting Forum
• Print ISSN: 0155-9982
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 42
• Issue: 4
• Pages: 341-358
• DOI: https://doi.org/10.1016/j.accfor.2018.10.001
• Keywords: Disclosure decisions; Compliance; Decommissioning costs; Factors of disclosure; International accounting standards, Oil and gas sector
• Public URL: https://nottingham-repository.worktribe.com/output/3786183
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S015599821830084X?via%3Dihub