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1)The successful-efforts method requires entities to group their assets by type: proved or unproved properties. T/F...

1)The successful-efforts method requires entities to group their assets by type: proved or unproved properties. T/F

Proved properties are required to be tested for impairment when events or circumstances indicate the carrying amount may not be recoverable, however, many companies choose to test them annually in conjunction with the receipt of an annual reserve report. T/F

Proved properties contain estimated quantities of oil and gas that geoscience and engineering data demonstrate with reasonable certainty to be economically producible in the future under existing economic conditions, operating methods and government regulations, also referred to as proved reserves. T/F

The impairment test for proved properties considers developed and undeveloped reserves, including a risk-adjusted measurement of probable and possible reserves. T/F

Unproved properties must be assessed for impairment on a periodic basis, at least annually, to determine if they have been impaired. T/F

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1) The successful-efforts method requires entities to group their assets by type: proved or unproved properties.
The statement is true.
2) Proved properties are required to be tested for impairment when events or circumstances indicate the carrying amount may not be recoverable, however, many companies choose to test them annually in conjunction with the receipt of an annual reserve report.
The statement is true.
3) Proved properties contain estimated quantities of oil and gas that geoscience and engineering data demonstrate with reasonable certainty to be economically producible in the future under existing economic conditions, operating methods and government regulations, also referred to as proved reserves
The statement is true.
4) The impairment test for proved properties considers developed and undeveloped reserves, including a risk-adjusted measurement of probable and possible reserves.
The statement is true.
5) Unproved properties must be assessed for impairment on a periodic basis, at least annually, to determine if they have been impaired.
The statement is true. As per ASC 932-360-35.

ekkarill92 answered 2 years ago
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