ISSN: 2225-8329
Open access
Harmonization of the accounting practice has long been on the front burner as an agenda for improving the quality of financial reporting the world over. This study is a qualitative review of the Full cost (FC) and Successful efforts (SE) methods of accounting in the oil and gas sector, given the ongoing controversy over which method should take precedence. A unique analysis was adopted by assessing the merits and demerits of the FC and SE methods based on selected qualitative criteria (conceptual, IASB framework and industry-specific). The study found significant differences between the two methods and argues that the SE method produces better qualitative financial information than the FC method based on the IASB framework criteria. The study also found low-risk exposure in Nigeria for investors in the oil and gas industry as a majority of the oil and gas firms operate within the downstream sector. Further research is required to determine the long-run impact of the choice between FC and SE on the performance of oil and gas firms.
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In-Text Citation: (Erhomosele & Rahim, 2021)
To Cite this Article: Erhomosele, O., & Rahim, L. J. (2021). Full Cost Vs Successful Efforts Accounting: A Systematic Review. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(3), 145–156.
Copyright: © 2021 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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