Energy, utilities and mining companies invest significant time and resources in reporting and compliance activities including:
- Building stakeholder trust and enhancing reputation through robust disclosure of a variety of performance measures.
- Reporting financial performance with greater confidence.
- Satisfying diverse legal and regulatory requirements for disclosure in multiple jurisdictions.
- Planning for changes in reporting guidelines and requirements. The global nature of the extractive and power markets, as well as the significant size of most industry participants, compounds the complexity of reporting and compliance risks to be managed.
Transition to IFRS and compliance with Sarbanes-Oxley regulations — regulatory changes designed to heighten transparency — have raised the profile of reporting and compliance risk within the energy, utilities, and mining industry, as the sector, a particularly capital intensive one, is dominated by entities with public debt.
Accounting issues particularly relevant to oil, gas, power and mining companies include, but are not limited to, joint ventures, treatment of goodwill, production sharing agreements, reserve estimates, impairment of assets, treatment of derivatives and hedging, measurement of commodities, asset retirement obligations, transportation contracts, fuel purchase contracts, tolling contracts, emissions trading, transmission contracts, service concession agreements, and revenue recognition.
Audit services
- All 60,000 in PwC member firms around the world use a single global audit methodology that is fully compliant with International Auditing Standards and applicable national standards.
- To gain audit comfort, we examine and validate the controls put in place by management to mitigate financial reporting risks.
- We bring together a team with appropriate industry experience and skills, including functional and technical specialists.
- We review external reporting for transparency consistent with the internal information that management uses to run the business.
Reporting and compliance consulting
- PwC helps clients identify governance, risk management and compliance information needs for both stakeholder reporting and operational monitoring in every area of the company.
- We evaluate the source and quality of the data to support the information needs and, after considering cost and other factors, recommend processes, organisation and use of technology for obtaining and preparing data and delivering timely information.
