Handbook
on
Mineral and Energy Asset Accounting
A first - very preliminary - outline
based on
SEEA 2003 and the Eurostat guidelines
for presentation at the
10th London Group Meeting
New York, 19-21 June 2006
Ole Gravgård
Statistics Denmark
Background
• London Group meeting in Copenhagen 2004:
“Subgroup could aim at developing an annotated
outline for guidelines for subsoil assets before
the next London Group meeting. The Eurostat
guidelines can be used as a starting point”.
• UNCEEA: ”Subgroup should prepare a
handbook on mineral and energy asset
accounts for consideration and approval by the
UNCEEA”
Scope and coverage ?
The Handbook should be a
compilation and implementation
manual
Should we also include
Theory/background ?
Country practices/examples ?
Uses of the accounts ?
Scope and coverage ?
Handbook on asset accounting
or
Handbook on assets and flows
Satellite Handbook
??
SEEA
Stocks
Flows
Basis for the handbook
• SEEA 2003
• Eurostat guidelines for standard tables, etc.
• Country practices
– (documents from Austria, Canada, New Zealand, Netherlands, Denmark, and UK
collected by the subgroup)
• Issue papers
• Litterature, articles
Contents (1)
1. Preface
2. Purpose of the handboook
3. Introduction to mineral and energy asset acounting
3.1.
Accounting entries for an asset account
4. Definitions and classifications of mineral and energy accounts
4.1. Mineral and energy resources in the SNA (AN.212)
4.2. Mineral and energy resources in the SEEA (EA.11)
4.3.
Links between SNA and SEEA classifications
4.4.
Classification of reserves
4.5.Aggregation of the same resource over different deposits
4.6.
Stock level
4.7.
Units of account
Contents (2)
5.
Mineral and Energy asset accounts in the SNA
5.1.
Economic appearance and disappearance
5.2.
Other non-transactional changes in assets
5.3.
Valuation of assets in 1993 SNA
6.
Mineral and energy asset accounts in SEEA
6.1.
Changes due to transactions
6.2.
Additions to stock levels
6.3.
Deductions from stock levels
6.4.
Other changes in stock levels
6.5.
Accounting entries for mineral and energy
6.6.The physical balance sheet and accumulation accounts
6.7. Monetary balance sheets and accumulation accounts
Contents (3)
7.
Valuation
7.1.
Estimating resource rent
7.2. Allocating overall value to specific types of products
7.3.
The future resource rent
7.4.
Future resource rent per unit extracted
7.5.
Determining the pattern of resource rents
7.6.
Determining the life length of the resource
7.7.
Determining the discount rate
7.8.
Determining the rate of return
7.9.Relationship between the discount rate and rate of return
7.10.
Nominal and real rates
7.11.Estimating the value of the stock level of the resource as
Net Present Value (NPV)
7.12. Possible problems with resource rent calculations
7.13.
Fixed price calculations
7.14.
Government appropriation of the resource rent
7.15.
Resource rent derived from PIM calculations
7.16.Resource rent derived from capital service flow calculations
7.17.
The net price or Hotelling alternative
7.18.Summary of methods for valuing natural resource stocks
Contents (4)
8.
Accounting for changes in the stocks of mineral and energy reserves
8.1.
The valuation of discoveries
8.2.
Extractions
8.3.
Separating produced and non-produced assets
8.4.
Linking asset accounts and flow accounts
8.5.
Example of valuation of stocks and flows
9.
Mineral exploration and mineral extraction, decommissioning costs
9.1.
Decommissioning costs
9.2.
Mineral exploration
9.3.
Cost of mineral exploration
9.4.Value of mineral exploration and value of the mineral resource
9.5.
What is mineral exploration?
9.6.Is there double counting in respect of mineral exploration
and mineral resources?
9.7.Options for recording the values of mineral exploration
and mineral deposits
Contents (5)
10. Sensitivity analysis
11. Accounting for ownership
11.1.
11.2.
Ownership in the SNA
Ownership in the SEEA
12. Other issues
13. Analysis of the accounts
13.1.
Valuation related to parameter changes
14. Examples
14.1.Example of asset accounts for oil and gas from SEEA-land
14.2.
Country examples
15. Use of the accounts
15.1.
Uses of physical asset accounts
16. Appendix - Explanation of terms used
16.1.
Terminology for the use of capital
17. References