One reason for an engineer to estimate the value of oil and gasrnproperties is to prepare an offer to purchase. Another reasonrnis to respond to a request from the accounting department. Byrnreading about selected IRS rulings, SEC rules, and FASBrnStatements and Concepts, the reader will better understandrnwhy the guidelines were adopted and how valuation methodsrnand assumptions can be changed to comply with differentrnguidelines in the United States. This paper is intended to bernillustrative in nature and to provide a basis for a commonrnunderstanding between engineers and accountants. This paperrnis not intended to be a definitive text. Interpretations of thernguidelines and regulations may change and new rules orrninterpretations may be adopted from time to time. Otherrnregulations and guidelines exist on the country, state, and localrnlevels. They can vary by area and require local expertise.
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