| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 107 === In view of the past research on the literature related to the Reserves Recognized Accounting (RRA), which focused on the reaction of the capital market, the literature has not been found to explore the relationship between the RRA notes and the prediction of future earnings, and there were positive and negative opinions about RRA information in the past. In addition to the research by Bandyopadhyay (1994), no other literature has been found to detect the persistence of earnings in the oil and gas industry, and whether there are differences in different accounting methods. Therefore, this paper is based on the US-listed oil and gas industry companies from 2009 to 2016. It is proposed to test whether the RRA note discloseure has a connotation for predicting future earnings, and whether there is a significant difference between the financial information and the RRA notes under the different accounting methods to predict future earnings.
The empirical results indicate that the RRA standardization measurement of the oil and gas industry company can predict future earnings under the successful effort method, and there are significant differences between different accounting methods. The proved reserves (PR) disclosure information cannot predict future earnings under the two accounting methods, and there is no significant difference between different accounting methods. Furthermore, after the proved reserves are classified as proved and developed reserves (PDR) and proved and undeveloped reserves (PUDR), the proved and developed reserves (PDR) can predict future earnings under both accounting methods. However, under the full cost method, it has been found that the coefficient of proved and undeveloped reserves (PUDR) and the next period of earnings have significant negative relationship. Also, the results for the two components of the proved reserves (PR) are not significantly different under different accounting methods. Overall, the notes to the financial statements of the oil and gas industry companies’ disclosure information about the reserves have information content, and can help to predict future earnings.
Besides, the SEC significantly revised the RRA disclosure requirements in 2008, requiring oil and gas companies to disclose the four types of reserves, and to develop the proved and undeveloped reserves (PURD) within five years. If it has been developed for more than five years, it must disclose its development situation and explain the reasons. Therefore, this paper also tests the five-year development disclosure information of the proved and undeveloped reserves (PUDR). The empirical results indicate that the five-year development disclosure of the proved and undeveloped reserves (PUDR) has incremental information content. In addition, the empirical results were not found to have incremental information content on the conversion rates of proved and undeveloped reserves (PUDR) to proved and developed reserves (PDR).
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