Joint Interest Research Committee (JIRC)
The Joint Interest Research Committee studies various aspects and issues related to joint venture accounting. The Committee partners with other PASC committees and other associations to develop industry accounting procedures, interpretative publications, and other accounting guidelines.
- To analyse, review and respond to joint venture accounting problems, issues or proposals
- To develop and update industry models for Accounting Procedures and associated interpretations
- To develop joint venture accounting guidelines, procedures and related publications
- To calculate and publish the annual overhead escalation factor (wage index) for the 1969,1988, 1996 PASC Accounting Procedures
- To liaise and collaborate with industry associations on matters pertaining to joint venture accounting
- To keep current on industry trends and practices relating to joint venture accounting
- To Liaise with COPAS and evaluate COPAS documents for relevancy to the Canadian petroleum industry
- The committee is comprised of individuals representing a cross section of oil and gas companies with disciplines in accounting, auditing and joint ventures. The members have varied backgrounds and include joint venture accounting (operated and non-operated, fixed assets, material control, audit, joint venture contracts and agreement negotiations).
- If you are interested in joining or would like more information about this committee, please feel free to contact the PASC office directly.
- New Accounting Guideline - Accounting for Pad Site Shared costs
- Updating AG-15, JV Greenhouse Gas Cost/Credit Allocation Guidelines and accounting for Carbon Tax in collaboration with the PJVA
- Updating AG-01, Payout Accounting Guideline
- Updating the 2011 Accounting Procedure and associated publications in collaboration with the PJVA and CAPL
- Respond to queries on joint venture accounting matters
- Rig costs review
- Updating AG-20, Warehouse Handling Fees and Elections
- Providing input into the proposed update to the Joint Venture Audit Protocol Guide (AG-05)
- Annual update of GP-01 - Wage Index Adjustment for overhead adjustments under the 1969, 1988 and 1996 PASC Accounting Procedures and publish the current year rate prior to July each year.
- Ongoing responses to accounting questions from industry as they come, some of which are posted to the Q&A section of the PASC website.
- Evaluation of COPAS publications for relevance to Canadian operations/publications.
- PJVA/CAPL Pad Site Sharing Taskforce - Committee members participated in the development of a Pad Site Sharing Operating Agreement.
- Reviewed the first draft of the AG-05, audit protocol guide and provided feedback to JVAC
- Participated to create a Work for Hire form for current PASC projects
- Developed an outline regarding insolvency/bankrupt companies – sent to Education Committee for possible PASC education topics.
- Developed an outline and drafting team for a new A&D Accounting guide, but due to lack of resources this project was deferred to a future date.
- Reorganized the Q&A section of the PASC website.
- Completed and Published GP-15 – Alberta Limitations Act and Industry Agreement
- Created a question and answer on Orphan Wells “how to fund a bankrupt company” when dealing with a bankrupt joint partner and published this on the PASC website - Q&A section.
- Reviewed draft publications from other PASC Committees
- Provided Accounting support to the following CAPL and PJVA publications
- Participated in review and update of the CAPL 2017 Property Transfer Procedure
- Developed an Industry Questionnaire regarding the 2011 Accounting Procedure and prepared a results and recommendation to the Board.
- Participated in the newly formed Publications Standing Committee
- Update API-14 publication – Replacement and Disposition of Material
- Worked on AG-19 Accounting for Shared Well Pad Costs –this is being done in conjunction with the PJVA Well Pad Task Force.
- Worked on a General Publication on the Limitations Act and Industry Agreement to act as an interpretation guide on the Limitations Act of Alberta.
- Updated AG-3 publication - Guidelines for Taking Oil Volumes In Kind.
- Gathered information to complete GP-11 publication – Product Allocation
- Reviewed common issues with other PASC Committees.
- Continued work on a document to help industry with adjustments as they relate to the Limitations Act and various Accounting and Operating Agreements
- Worked with industry and drafting the allocation of “shared well pad costs”
- Worked on redrafting AG- 3 –Taking Oil in Kind
- Developed a JV ‘issues’ list regarding US reporting under the Transparency Measures Act and forwarded the list to the PASC Finance group, who responded with comments.
- Participated in review and update of the CAPL 2015 Operating Procedure; CAPL 2015 Overriding Royalty Procedure and CAPL 2015 Farmout and Royalty Procedure
- Reviewed the PASC publications history and documents with the PASC office personnel
- Provided comments on the COPAS MF-23 publication - Discounts
- Reviewed the “Unconventional Resource Operating Procedure”
- Reviewed common issues with JVAC
- Reviewed possible updates to the 2011AP and associated documents
- Update AG-18 publication, PASC Chart of Accounts
- Worked on a discussion paper re: chargeable engineering cost under 1953-96 accounting procedures – was not published
- Worked with the PASC office regarding the PASC publication process
- Reviewed PASC documents listed on the website and recommended those that should be archived as they are no longer relevant and listed those that need updating
- Publication of a corrected version of the 2011 PASC Accounting Procedure to reflect cosmetic and grammatical corrections
The committee finalized the 2011 PSC Accounting Procedure package with the publication of AP-2011 and the publication of an overview (GP-14) and companion APIs
If you are interested in joining, or would like more information about this committee, please feel free to contact the PASC office.