Management Science Department Yanbu University College (Male's Campus) The Royal Commission at Yanbu Kingdom of Saudi Arabia Academic Year 2019-20 Semester 192 PROJECT Course Name and Code: ADVANCED ACCOUNTING ACCT 412 Section: Due Date: Wednesday, April 08, 2020 Submission Date: Total Marks: Marks Obtained: Marked By: Dr. Mohammad Aamir Khan Signature: 25 Academic Integrity Plagiarism The practice of taking someone else's work or ideas and passing them off as one's own. An example of plagiarism is to use creative works of another, without appropriate acknowledgment of the author or source. Collusion Secret or illegal cooperation in order to deceive others. Collusion is the presentation of an assignment as one's own which is in fact the result in whole or in part of unauthorized collaboration with other person(s). Collusion involves the cooperation of two or more individuals in plagiarism or other forms of academic misconduct. Both plagiarism and collusion constitute cheating. Disciplinary action will be taken against students who engage in plagiarism and collusion. Student Declaration I have read and understood the statement of academic integrity written above. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the teacher, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work. Student ID Student Name Signature INTRODUCTION Analysis of oil & gas project is designed to get you familiar with a real O&G company's financial statements and disclosures. The purpose of the project is for student to be able to identify the special accounting recording for Oil and Gas Company. REQUIREMENT 1. Form into a group of 3 students. 2. Choose ONE Oil and Gas company that are listed anywhere in the world. 3. Go to the company's website to get each company annual report for THREE YEARS. 4. All of the financial and company information that you need will be in the company's Annual Report. Submit soft copy of the annual reports by mail. 5. Answer all of the questions to the best of your ability, using all of the accounting skills that you have accumulated to answer the questions 6. You must submit your final report about your findings. WRITTEN REPORT Part A. GENERAL O&G INDUSTRY Research the following information based on the country of your chosen company: (Provide necessary references for your answer) 1. What are the different oil and gas sectors in the country of your chosen company? 2. What are the largest volume products in the country of your chosen company? 3. Discuss the Oil and gas industry outlook for 2020 in the country of your chosen company? 4. Discuss the problem facing the O&G industry in the country of your chosen company. 5. Discuss the environmental issue facing the O&G industry in the country of your chosen country. 6. Discuss the problem of female talent that is not only unique to O&G, but it is more acute. Part B: COMPANY INFORMATION Company overview:- Do not copy paste from annual report, You have to write in your own words. 1. Brief introduction about your company and location. 2. What O&G products does the company produce? Be specific 3. What do you think the outlook (future performance) is for these products for your company? Part C: ACCOUNTING FOR O&G 1. What types of O&G operations your company involves: Upstream or downstream or integrated? Explain 2. Provide the O&G operating highlights (for each of its O&G products) for the past three years of your company 3. Provide summary of company operations in term of location (local and international) 4. What is your company competitive advantage? 5. What is your company corporate sustainability plan? 6. Look at company income statement, find the following information: a. How much is O&G revenue for the current year? b. How much is the cost related to O&G for the current year? c. How much is the DDA expenses for the current year? d. How much is the net income for the year? 7. Look at company balance sheet, find the following information: a. How much is the current asset, long term asset and total asset? b. How much is the inventory and its component? c. How much is the current liability, long term liability and total liability? d. How much is the total equity? What is the component? 8. Look at company statement of cash flows, find the following information: a. How much is the cash flow from operating activities? What is the biggest component? b. How much is the cash flow from investing activities? What is the biggest component? c. How much is the cash flow from financing activities? What is the biggest component? Part D. FINANCIAL PERFORMANCE AND FINANCIAL MANAGEMENT OF AN OIL AND GAS COMPANY Q1. Financial performance of an oil and gas company is evaluated using different categories of ratios. Calculate the following ratios for three years: 1. Liquidity analysis - current ratios and quick ratios 2. Working capital management analysis - inventory turnover in days, debtors (A/R) collection period and creditors (A/P) collection period 3. Long term gearing - capital gearing and interest coverage ratios 4. Cash flow ratios - operating cash flows to maturity obligations ratios, free cash flow ratios 5. Profitability ratios - gross profit margin and return on capital employed 6. Investing ratios - EPS, return on average capital employed Q2. Find information about company source of financing specifically key areas to be considered, aims and purpose of obtaining finance and factors considering for the source of financing. Q3. Based on your ratios calculation and source of financing, provide general conclusion about the company financial performance and financial management. SUBMISSION Submit annual report and written report. Management Science Department Yanbu University College (Male's Campus) The Royal Commission at Yanbu Kingdom of Saudi Arabia Academic Year 2019-20 Semester 192 PROJECT Course Name and Code: ADVANCED ACCOUNTING ACCT 412 Section: Due Date: Wednesday, April 08, 2020 Submission Date: Total Marks: Marks Obtained: Marked By: Dr. Mohammad Aamir Khan Signature: 25 Academic Integrity Plagiarism The practice of taking someone else's work or ideas and passing them off as one's own. An example of plagiarism is to use creative works of another, without appropriate acknowledgment of the author or source. Collusion Secret or illegal cooperation in order to deceive others. Collusion is the presentation of an assignment as one's own which is in fact the result in whole or in part of unauthorized collaboration with other person(s). Collusion involves the cooperation of two or more individuals in plagiarism or other forms of academic misconduct. Both plagiarism and collusion constitute cheating. Disciplinary action will be taken against students who engage in plagiarism and collusion. Student Declaration I have read and understood the statement of academic integrity written above. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the teacher, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work. Student ID Student Name Signature INTRODUCTION Analysis of oil & gas project is designed to get you familiar with a real O&G company's financial statements and disclosures. The purpose of the project is for student to be able to identify the special accounting recording for Oil and Gas Company. REQUIREMENT 1. Form into a group of 3 students. 2. Choose ONE Oil and Gas company that are listed anywhere in the world. 3. Go to the company's website to get each company annual report for THREE YEARS. 4. All of the financial and company information that you need will be in the company's Annual Report. Submit soft copy of the annual reports by mail. 5. Answer all of the questions to the best of your ability, using all of the accounting skills that you have accumulated to answer the questions 6. You must submit your final report about your findings. WRITTEN REPORT Part A. GENERAL O&G INDUSTRY Research the following information based on the country of your chosen company: (Provide necessary references for your answer) 1. What are the different oil and gas sectors in the country of your chosen company? 2. What are the largest volume products in the country of your chosen company? 3. Discuss the Oil and gas industry outlook for 2020 in the country of your chosen company? 4. Discuss the problem facing the O&G industry in the country of your chosen company. 5. Discuss the environmental issue facing the O&G industry in the country of your chosen country. 6. Discuss the problem of female talent that is not only unique to O&G, but it is more acute. Part B: COMPANY INFORMATION Company overview:- Do not copy paste from annual report, You have to write in your own words. 1. Brief introduction about your company and location. 2. What O&G products does the company produce? Be specific 3. What do you think the outlook (future performance) is for these products for your company? Part C: ACCOUNTING FOR O&G 1. What types of O&G operations your company involves: Upstream or downstream or integrated? Explain 2. Provide the O&G operating highlights (for each of its O&G products) for the past three years of your company 3. Provide summary of company operations in term of location (local and international) 4. What is your company competitive advantage? 5. What is your company corporate sustainability plan? 6. Look at company income statement, find the following information: a. How much is O&G revenue for the current year? b. How much is the cost related to O&G for the current year? c. How much is the DDA expenses for the current year? d. How much is the net income for the year? 7. Look at company balance sheet, find the following information: a. How much is the current asset, long term asset and total asset? b. How much is the inventory and its component? c. How much is the current liability, long term liability and total liability? d. How much is the total equity? What is the component? 8. Look at company statement of cash flows, find the following information: a. How much is the cash flow from operating activities? What is the biggest component? b. How much is the cash flow from investing activities? What is the biggest component? c. How much is the cash flow from financing activities? What is the biggest component? Part D. FINANCIAL PERFORMANCE AND FINANCIAL MANAGEMENT OF AN OIL AND GAS COMPANY Q1. Financial performance of an oil and gas company is evaluated using different categories of ratios. Calculate the following ratios for three years: 1. Liquidity analysis - current ratios and quick ratios 2. Working capital management analysis - inventory turnover in days, debtors (A/R) collection period and creditors (A/P) collection period 3. Long term gearing - capital gearing and interest coverage ratios 4. Cash flow ratios - operating cash flows to maturity obligations ratios, free cash flow ratios 5. Profitability ratios - gross profit margin and return on capital employed 6. Investing ratios - EPS, return on average capital employed Q2. Find information about company source of financing specifically key areas to be considered, aims and purpose of obtaining finance and factors considering for the source of financing. Q3. Based on your ratios calculation and source of financing, provide general conclusion about the company financial performance and financial management. SUBMISSION Submit annual report and written report