Table A2. Index of historical accounting...

Table A2.

Index of historical accounting practices

Pre-1960s
Investment phase	Expenditure items	USA	Canada	USA	USA
	Types of acquisition, evaluation and exploration costs	Horace R. Brock, 1956	Robert E. Waller,1956	Robert H. Irving and Verden R. Draper, 1958	C. Aubery Smith and Horace R. Brock, 1959
Acquisition	Acquisition legal costs	More capitalise/fewer write off if paid to outsiders	More capitalise	More capitalised/fewer write off if paid to outsiders	Capitalise costs of leased acreages and write off others
		More write off/fewer capitalise if undertaken by company own staff	Fewer write off if not linked to producing properties	More write off/fewer capitalised if undertaken by company own staff	Capitalise the entire acquisition costs
					Capitalise costs of more than $50
		More write off if small amount of up to $300			Write off the entire acquisition cost
	Leasehold bonus	Capitalise if paid in cash	Capitalise	Majority capitalise	Capitalise
	Leasehold bonus	Not recorded if paid in oil	Capitalise	Few write off	Capitalise
	Lease rental payments	More write off	Capitalise	Majority write off	More write off
	Lease rental payments	Few capitalise to leasehold	Capitalise	Few capitalise	Few capitalise
	Delay Rental costs	Majority write off delay rentals	Write off	Write off	Write off
	Delay Rental costs	Very few capitalise delay rentals	Write off	Write off	Write off
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Write off
	Test well contribution – dry holes	Write off	Write off	Capitalise by newer companies	Write off
	Test well – bottom holes contribution	Write off if dry	Write off is dry	Write off	Write off if dry
		Capitalise/write off if test well is productive	Capitalise if test well is productive	Capitalise/write off if test well is productive	More capitalise/ Few write off if test well is productive
		Capitalise/write off if test well is productive	Capitalise if test well is productive	Capitalise by newly established companies	More capitalise/ Few write off if test well is productive
Pre-1960s
Investment phase	Expenditure items	USA	Canada	USA	USA
Exploration	Prospecting costs	More write off	Capitalise	Generally write off	Write off
		Less capitalise		Sometimes capitalise	Capitalise
		Less capitalise		Sometimes capitalise	Capitalise if lead to acquisition
	Intangible Drilling Costs (IDC)	Write off by some even in case of leading to producing wells, for tax purposes	Write off	Write off by fewer companies	Write off
			Capitalise if lead to producing properties		Capitalise
			Capitalise irrespective of results of exploration		Capitalise if linked to producing properties
	Exploratory and development drilling wells costs	Capitalise/write off exploration costs if successful	Capitalise if lead to producing properties	Write off the entire costs if unsuccessful	Capitalise/write off exploration costs if successful
	Exploratory and development drilling wells costs	Write off the entire costs if unsuccessful	Capitalise irrespective of results of drilling	Capitalised by newly established companies	Write off the entire costs if unsuccessful
	Exploration costs	Capitalised if paid to outsiders	Write off	Write off the entire costs if unsuccessful	Capitalise
		Write off the entire costs if unsuccessful	Capitalise if lead to producing properties	Capitalised by newly established companies	Capitalise if lead to producing properties
Capitalise irrespective of results of exploration		Write off the entire costs if unsuccessful	Write off	Capitalised by newly established companies
1960–2000
Investment phase	Expenditure items	Canada	USA	USA	Australia
	Types of acquisition, evaluation and exploration costs	W. B. Coutts, 1963	Stanley P. Porter, 1965	Robert E. Field, 1969	Roy Lourens and Susan Henderson, 1972
Acquisition	Acquisition legal costs	Capitalise	Capitalise all	Capitalise all	Capitalise
			Capitalise costs that lead to property acquisition	Capitalise if paid to outsiders	Write off
			Capitalise costs that lead to property acquisition	Write off all	Write off
	Leasehold bonus	Capitalise	Capitalise	Capitalise	Capitalise
	Lease rental payments	Write off	Write off if not recoverable from production	Write off	Capitalise
	Lease rental payments	Capitalise	Capitalise if recoverable from production	Write off	Write off
	Delay rental costs	Write off	Few capitalise	Write off	Capitalise
	Delay rental costs	Write off	More write off	Write off	Capitalise
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Not specified
	Test well – bottom holes contribution	Write off	Write off	Write off	Not specified
	Test well – bottom holes contribution	Capitalise if productive	Capitalise if productive	Capitalise if productive	Not specified
1960–2000
Investment phase	Expenditure items	Canada	USA	USA	Australia
Exploration	Prospecting costs	Write off	Write off all costs	Write off	Write off
		Capitalise if leading to producing properties	Capitalise costs paid to outsiders	Capitalise costs paid to outsiders	Capitalise
		Capitalise if leading to producing properties	Capitalise all costs	Capitalise costs paid to outsiders	Capitalise if leading to producing properties
	Intangible Drilling Costs (IDC)	Write off if not leading to producible properties	Capitalise	Capitalise	Not specified
	Intangible Drilling Costs (IDC)	Write off if not leading to producible properties	Few write off	Few write off	Not specified
	Exploratory and development drilling wells costs	Capitalise	Capitalise if leading to producing properties	Capitalise if leading to producing properties	More capitalise
	Exploratory and development drilling wells costs	Capitalise	Write off if non successful	Write off if non successful	Few write off
	Exploration costs	Capitalise if leading to producing properties	Write off all	Capitalise if leading to producing properties	More capitalise
		Write off if not leading to producible properties	Majority capitalise all	Capitalise all	Few write off
		Write off if not leading to producible properties	Few capitalise if leading to producing properties	Capitalise what is paid to outsiders	Few write off
	1960–2000			Post 2000
Investment phase	Expenditure items	USA	USA	USA	IFRS
	Types of acquisition, evaluation and exploration costs	Accounting Principle Board (API), 1972	John H. Myers, 1974	Rebecca A. Gallun Charlotte J. Wright Linda M. Nichols John W. Stevenson, 2001	IFRS 6 Keith Alfredson et al., 2009; PWC, 2017
Acquisition	Acquisition legal Costs	Capitalise direct costs	Capitalise	Capitalise	Write off expenses incur prior to obtaining exploration licences
	Acquisition legal Costs	Write off indirect costs	Capitalise	Capitalise
	Leasehold bonus	Capitalise	Capitalise	Capitalise	Capitalise
	Lease rental payments	Capitalise all	Capitalise all	Capitalise all	Write off expenses incur prior to obtaining exploration licences
	Lease rental payments	Write off all	Write off all	Write off
	Delay rental costs	Capitalise if leading to producing properties	Capitalise	Capitalise all
	Delay rental costs	Capitalise if leading to producing properties	Write off	Write off
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Continue with the accounting policy used for expensing or capitalisation rental costs
			Capitalise if dry-development well	Capitalise all
			Capitalise all costs	Capitalise all
	Test well – bottom holes contribution	Capitalise if successful	Capitalise all costs	Write off
	Test well – bottom holes contribution	Write off	Capitalise if successful	Capitalise all
	1960–2000			Post 2000
Investment phase	Expenditure items	USA	USA	USA	IFRS
Exploration	Prospecting costs	Capitalise if lead to defining areas of interest	Capitalise if lead to producing properties	Capitalise all	Capitalise all
Write off if not leading to defining areas of interest	Write off if do not lead to producing properties	Write off	Write off
Write off all costs	Capitalise all costs	Write off	Write off
Intangible Drilling Costs (IDC)	Capitalise costs of extra depth	Capitalise if leading to producible properties	Capitalise all	Capitalise all
Intangible Drilling Costs (IDC)	Capitalise costs of extra depth	Write off if not leading to producible properties	Write off	Write off
Exploratory and development drilling wells costs	Capitalise if leading to producible properties	Capitalise	Capitalise costs of exploratory wells if leading to producible properties	Capitalise costs of exploratory wells if leading to producible properties
	Capitalise if leading to producible properties	Capitalise	Capitalise all	Capitalise all
	Write off if do not lead to producing properties	Write off	Capitalise costs of development drilling wells	Capitalise costs of development drilling wells
Exploration costs	Capitalise if leading to producible properties	Capitalise all	Capitalise if leading to producible properties	Capitalise if leading to producible properties
Exploration costs	Write off if do not lead to producing properties	Capitalise if leading to producible properties	Capitalise all	Capitalise all

Pre-1960s
Investment phase	Expenditure items	USA	Canada	USA	USA
	Types of acquisition, evaluation and exploration costs	Horace R. Brock, 1956	Robert E. Waller,1956	Robert H. Irving and Verden R. Draper, 1958	C. Aubery Smith and Horace R. Brock, 1959
Acquisition	Acquisition legal costs	More capitalise/fewer write off if paid to outsiders	More capitalise	More capitalised/fewer write off if paid to outsiders	Capitalise costs of leased acreages and write off others
		More write off/fewer capitalise if undertaken by company own staff	Fewer write off if not linked to producing properties	More write off/fewer capitalised if undertaken by company own staff	Capitalise the entire acquisition costs
					Capitalise costs of more than $50
		More write off if small amount of up to $300			Write off the entire acquisition cost
	Leasehold bonus	Capitalise if paid in cash	Capitalise	Majority capitalise	Capitalise
	Leasehold bonus	Not recorded if paid in oil	Capitalise	Few write off	Capitalise
	Lease rental payments	More write off	Capitalise	Majority write off	More write off
	Lease rental payments	Few capitalise to leasehold	Capitalise	Few capitalise	Few capitalise
	Delay Rental costs	Majority write off delay rentals	Write off	Write off	Write off
	Delay Rental costs	Very few capitalise delay rentals	Write off	Write off	Write off
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Write off
	Test well contribution – dry holes	Write off	Write off	Capitalise by newer companies	Write off
	Test well – bottom holes contribution	Write off if dry	Write off is dry	Write off	Write off if dry
		Capitalise/write off if test well is productive	Capitalise if test well is productive	Capitalise/write off if test well is productive	More capitalise/ Few write off if test well is productive
		Capitalise/write off if test well is productive	Capitalise if test well is productive	Capitalise by newly established companies	More capitalise/ Few write off if test well is productive
Pre-1960s
Investment phase	Expenditure items	USA	Canada	USA	USA
Exploration	Prospecting costs	More write off	Capitalise	Generally write off	Write off
		Less capitalise		Sometimes capitalise	Capitalise
		Less capitalise		Sometimes capitalise	Capitalise if lead to acquisition
	Intangible Drilling Costs (IDC)	Write off by some even in case of leading to producing wells, for tax purposes	Write off	Write off by fewer companies	Write off
			Capitalise if lead to producing properties		Capitalise
			Capitalise irrespective of results of exploration		Capitalise if linked to producing properties
	Exploratory and development drilling wells costs	Capitalise/write off exploration costs if successful	Capitalise if lead to producing properties	Write off the entire costs if unsuccessful	Capitalise/write off exploration costs if successful
	Exploratory and development drilling wells costs	Write off the entire costs if unsuccessful	Capitalise irrespective of results of drilling	Capitalised by newly established companies	Write off the entire costs if unsuccessful
	Exploration costs	Capitalised if paid to outsiders	Write off	Write off the entire costs if unsuccessful	Capitalise
		Write off the entire costs if unsuccessful	Capitalise if lead to producing properties	Capitalised by newly established companies	Capitalise if lead to producing properties
Capitalise irrespective of results of exploration		Write off the entire costs if unsuccessful	Write off	Capitalised by newly established companies
1960–2000
Investment phase	Expenditure items	Canada	USA	USA	Australia
	Types of acquisition, evaluation and exploration costs	W. B. Coutts, 1963	Stanley P. Porter, 1965	Robert E. Field, 1969	Roy Lourens and Susan Henderson, 1972
Acquisition	Acquisition legal costs	Capitalise	Capitalise all	Capitalise all	Capitalise
			Capitalise costs that lead to property acquisition	Capitalise if paid to outsiders	Write off
			Capitalise costs that lead to property acquisition	Write off all	Write off
	Leasehold bonus	Capitalise	Capitalise	Capitalise	Capitalise
	Lease rental payments	Write off	Write off if not recoverable from production	Write off	Capitalise
	Lease rental payments	Capitalise	Capitalise if recoverable from production	Write off	Write off
	Delay rental costs	Write off	Few capitalise	Write off	Capitalise
	Delay rental costs	Write off	More write off	Write off	Capitalise
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Not specified
	Test well – bottom holes contribution	Write off	Write off	Write off	Not specified
	Test well – bottom holes contribution	Capitalise if productive	Capitalise if productive	Capitalise if productive	Not specified
1960–2000
Investment phase	Expenditure items	Canada	USA	USA	Australia
Exploration	Prospecting costs	Write off	Write off all costs	Write off	Write off
		Capitalise if leading to producing properties	Capitalise costs paid to outsiders	Capitalise costs paid to outsiders	Capitalise
		Capitalise if leading to producing properties	Capitalise all costs	Capitalise costs paid to outsiders	Capitalise if leading to producing properties
	Intangible Drilling Costs (IDC)	Write off if not leading to producible properties	Capitalise	Capitalise	Not specified
	Intangible Drilling Costs (IDC)	Write off if not leading to producible properties	Few write off	Few write off	Not specified
	Exploratory and development drilling wells costs	Capitalise	Capitalise if leading to producing properties	Capitalise if leading to producing properties	More capitalise
	Exploratory and development drilling wells costs	Capitalise	Write off if non successful	Write off if non successful	Few write off
	Exploration costs	Capitalise if leading to producing properties	Write off all	Capitalise if leading to producing properties	More capitalise
		Write off if not leading to producible properties	Majority capitalise all	Capitalise all	Few write off
		Write off if not leading to producible properties	Few capitalise if leading to producing properties	Capitalise what is paid to outsiders	Few write off
	1960–2000			Post 2000
Investment phase	Expenditure items	USA	USA	USA	IFRS
	Types of acquisition, evaluation and exploration costs	Accounting Principle Board (API), 1972	John H. Myers, 1974	Rebecca A. GallunCharlotte J. WrightLinda M. NicholsJohn W. Stevenson, 2001	IFRS 6Keith Alfredson et al., 2009; PWC, 2017
Acquisition	Acquisition legal Costs	Capitalise direct costs	Capitalise	Capitalise	Write off expenses incur prior to obtaining exploration licences
	Acquisition legal Costs	Write off indirect costs	Capitalise	Capitalise
	Leasehold bonus	Capitalise	Capitalise	Capitalise	Capitalise
	Lease rental payments	Capitalise all	Capitalise all	Capitalise all	Write off expenses incur prior to obtaining exploration licences
	Lease rental payments	Write off all	Write off all	Write off
	Delay rental costs	Capitalise if leading to producing properties	Capitalise	Capitalise all
	Delay rental costs	Capitalise if leading to producing properties	Write off	Write off
Appraisal	Test well contribution – dry holes	Write off	Write off	Write off	Continue with the accounting policy used for expensing or capitalisation rental costs
			Capitalise if dry-development well	Capitalise all
			Capitalise all costs	Capitalise all
	Test well – bottom holes contribution	Capitalise if successful	Capitalise all costs	Write off
	Test well – bottom holes contribution	Write off	Capitalise if successful	Capitalise all
	1960–2000			Post 2000
Investment phase	Expenditure items	USA	USA	USA	IFRS
Exploration	Prospecting costs	Capitalise if lead to defining areas of interest	Capitalise if lead to producing properties	Capitalise all	Capitalise all
Write off if not leading to defining areas of interest	Write off if do not lead to producing properties	Write off	Write off
Write off all costs	Capitalise all costs	Write off	Write off
Intangible Drilling Costs (IDC)	Capitalise costs of extra depth	Capitalise if leading to producible properties	Capitalise all	Capitalise all
Intangible Drilling Costs (IDC)	Capitalise costs of extra depth	Write off if not leading to producible properties	Write off	Write off
Exploratory and development drilling wells costs	Capitalise if leading to producible properties	Capitalise	Capitalise costs of exploratory wells if leading to producible properties	Capitalise costs of exploratory wells if leading to producible properties
	Capitalise if leading to producible properties	Capitalise	Capitalise all	Capitalise all
	Write off if do not lead to producing properties	Write off	Capitalise costs of development drilling wells	Capitalise costs of development drilling wells
Exploration costs	Capitalise if leading to producible properties	Capitalise all	Capitalise if leading to producible properties	Capitalise if leading to producible properties
Exploration costs	Write off if do not lead to producing properties	Capitalise if leading to producible properties	Capitalise all	Capitalise all

Source: created by authors

[ViewLarge]