what is acquisition cost?
Acquisition costs can be defined as cost incurred in the course of acquiring the rights to explore, develop and produce oil or natural gas. They include expenses relating to either purchase or lease the right to extract the oil and gas from a property not owned by the company. Also included in acquisition costs are any lease bonus payments paid to the property owner along with legal expenses, and title search, broker and recording costs.
In this beginning phase, the accounts payable, land and joint venture groups work together to ensure all expenses are paid and recorded in the general ledger to account for acquiring the leases. As accountants, industries such as oil and gas offer promising career learning and growth. Depending on the size of the company, an accountant can learn multiple accounting software, regulatory compliance and onshore or offshore revenue accounting rules and expectations.
As a professional in the oil and gas industry, one skill that I strive to continuously improve and excel in is my analytical skills. It remains an important tool to solving problems.
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