Abstract:

In the oil and gas industry uses specific objects of accounting. Set of activities aimed at obtaining new knowledge and its practical use in the creation of a new product or technology is considered as a set of Research and Development (R & D) (Gregory, 2018). R & D in the oil and gas industry includes:- Research efforts (R) – a set of theoretical and (or) experimental studies conducted in order to obtain reasonable baseline data, research principles and ways to create (upgrade) products. Development efforts (D) – a set of works performed in accordance with the terms of reference for the development of technical documentation for substances, materials and technological processes for their production, including testing of pilot batches. The criteria allowing qualifying the expenditures of oil and gas companies as expenditures to R & D are:- the content of the R & D contract indicates that in the result there can be obtained or applied a new scientific knowledge (knowledge unknown from the prior art); - it is assumed that reaching of the positive result of the work will cause the possibility to obtain future economic benefits; - it is assumed that in case of the positive results of the work it will be possible to demonstrate its application in production for management needs. In most cases, expenditures for Research efforts must be accounted for in miscellaneous expenses, since research works are theoretical ones and it is anticipated that in the results of these works there is no possibility to obtain assets, the use of which will bring economic benefits and whose use can be demonstrated (i.e. the results of Research efforts do not meet the recognition criteria of expenses as R & D expenditure). If the R & D contract separately allocates the cost of research works, the costs of such works are also subject to account for in miscellaneous expenses.