Capturing risks in accounting, the case of extractive industries

La prise en compte du risque en comptabilité, le cas des industries extractives

Véronique Blum () and Charlotte Krychowski ()
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Véronique Blum: UGA - Université Grenoble Alpes
Charlotte Krychowski: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: In their intent to define standards related to extractive activities, many accounting standard setters have addressed the following question: What estimate of future growth prospects is useful to investors in addition to balance sheet and income statement information? Our study uses the Ohlson model (1995) on a sample of 52 companies, listed over a period of 11 years (1996-2006) in order to test the relevance of 4 forward-looking vectors, as complements to the book value and net earnings : the optional values of oil reserves, the free cash flows, the capex and the crude oil price volatility. Our results suggest that a heuristic reserve value based on informational items contributing to a real option pricing is the most informative and least redundant forward-looking value. They question the usefulness of reporting of forward-looking results in the form of point estimates.

Keywords: Accounting; Extractives industries; Petroleum industry; Financial evaluation; Petroleum reserves; Ohlson model; Comptabilité; Industries extractives; Evaluation financière; Réserves pétrolières; Modèle d'Ohlson (search for similar items in EconPapers)
Date: 2023-11-10
New Economics Papers: this item is included in nep-acc and nep-ene
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Published in Revue française de gestion industrielle, 2023, 37

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