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Institute For Oil & Gas Training
OGI-1152 New

IFRS 16 – Leases: JV Charging & Modifications Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

IFRS 16 – Leases is a critical financial reporting standard for oil and gas organisations managing complex lease portfolios, joint ventures, shared assets, and partner charging arrangements. This IFRS 16 – Leases: JV Charging & Modifications Training Course from Institute For Oil & Gas Training develops the practical capability required to account for leases accurately across upstream, midstream, and downstream operations.

Oil and gas organisations routinely enter into arrangements involving drilling equipment, production facilities, warehouses, offices, vessels, vehicles, pipelines, terminals, processing facilities, technology infrastructure, and other right-of-use assets. When these arrangements involve joint operations, joint ventures, contractors, or multiple participating partners, determining the correct accounting treatment becomes more demanding. Finance teams must distinguish between lease arrangements, service components, operating expenditure, capital expenditure, partner recoveries, and contractual charging mechanisms.

The course focuses on the practical application of IFRS 16 – Leases within petroleum operations, with particular attention to joint venture charging, lease cost allocation to partners, modifications, remeasurement, variable lease payments, sale and leaseback transactions, subleasing arrangements, and lease disclosure requirements. Participants examine how lease accounting decisions influence financial reporting, partner billing, cost recovery, budgeting, asset management, and financial controls.

A key focus is the relationship between contractual arrangements and accounting treatment. A petroleum asset used by several partners does not automatically produce the same accounting outcome as an asset leased directly by a single operating entity. The accounting team must understand who controls the use of an identified asset, which entity holds the relevant rights and obligations, how costs are allocated, and how contractual changes affect recognised lease balances.

The course also addresses the commercial implications of lease accounting. Accurate lease classification and measurement support reliable cost allocation, partner reporting, financial forecasting, and audit preparation. Incorrect treatment can result in inconsistent partner charges, inaccurate liabilities, inappropriate expense recognition, and weaknesses in financial reporting.

Institute For Oil & Gas Training delivers the course from an industry-focused perspective, connecting IFRS 16 requirements with petroleum finance processes and joint operating environments. Participants work with realistic oil and gas scenarios involving shared assets, changing contractual terms, partner participation, and complex payment structures.

The course also develops a structured approach to lease modifications and remeasurement. Changes to lease scope, consideration, contractual periods, or underlying arrangements require disciplined assessment and appropriate accounting treatment. Participants learn how to identify relevant changes, assess their accounting consequences, and maintain consistent documentation.

Another important area is variable lease payments. Petroleum contracts frequently contain payment mechanisms linked to production, usage, performance, or other contractual factors. Understanding how such payments interact with IFRS 16 supports more accurate measurement and helps finance teams distinguish lease-related amounts from other operating costs.

The course provides a practical framework for connecting lease accounting with petroleum joint venture finance. It enables professionals to analyse agreements, identify accounting implications, allocate costs appropriately, support partner charging processes, and prepare robust financial reporting information.

Objectives

  • Explain the core principles of IFRS 16 – Leases and their relevance to oil and gas operations

  • Identify lease arrangements within complex petroleum contracts and operational agreements

  • Assess the accounting implications of identified assets and rights to control their use

  • Apply appropriate approaches to lease recognition and measurement

  • Understand joint operation lease treatment within shared petroleum activities

  • Develop practical approaches to lease cost allocation to partners

  • Analyse contractual terms affecting joint venture charging

  • Distinguish lease-related costs from service costs and other operating expenditure

  • Assess the accounting impact of lease modification and remeasurement

  • Evaluate variable lease payments within relevant contractual arrangements

  • Understand accounting considerations for sale and leaseback transactions

  • Analyse subleasing arrangements and their financial reporting implications

  • Improve the quality and consistency of lease accounting documentation

  • Connect lease accounting decisions with budgeting, forecasting, and partner reporting

  • Assess the impact on cost recovery of lease-related accounting and charging decisions

  • Understand lease disclosure requirements and supporting information

  • Strengthen coordination between finance, commercial, procurement, legal, and asset management teams

  • Improve readiness for internal and external audit review

  • Apply structured analysis to complex petroleum lease arrangements

  • Support consistent financial reporting across joint venture and operating environments

Training methodology

Institute For Oil & Gas Training uses a corporate and application-led methodology designed for finance, accounting, commercial, procurement, asset management, and joint venture professionals working in oil and gas organisations.

The course combines technical explanation with practical analysis rather than relying solely on theoretical interpretation. Participants work through realistic petroleum scenarios that reflect the types of contractual and financial issues encountered in operating companies, non-operating partners, joint ventures, and shared asset environments.

Practical Case Studies

Case studies examine lease arrangements involving drilling assets, vessels, production facilities, offices, warehouses, and other operational resources. Participants assess the underlying arrangement, identify relevant lease components, determine the appropriate accounting approach, and consider the implications for partner charging.

Joint Venture Scenarios

Participants analyse joint operation arrangements where multiple parties share costs associated with leased assets. Exercises focus on lease cost allocation to partners, responsibility for recognising lease-related amounts, supporting documentation, and the relationship between accounting treatment and joint venture billing.

Lease Modification Exercises

Practical scenarios demonstrate how changes to lease terms affect accounting. Participants assess changes in scope, consideration, contractual periods, and other relevant terms before determining the appropriate approach to lease modification and remeasurement.

Financial Reporting Simulations

Participants work through simplified reporting scenarios involving right-of-use assets, lease liabilities, expenses, cash payments, and disclosure information. These exercises help connect individual accounting decisions with financial statement presentation.

Group Analysis

Group exercises encourage participants to examine the same contractual arrangement from accounting, commercial, procurement, operations, and joint venture perspectives. This approach highlights how cross-functional decisions influence lease accounting and cost recovery.

Real-World Contract Review

Participants use structured contract analysis techniques to identify relevant lease provisions, payment clauses, renewal terms, modification provisions, variable payments, and other information needed by finance teams.

Scenario-Based Discussion

The methodology includes guided discussions around ambiguous or complex arrangements. Participants develop a disciplined process for documenting assumptions, identifying accounting questions, escalating issues, and maintaining consistency across lease portfolios.

Organisational impact

The course strengthens the organisation's ability to manage lease accounting as an integrated financial and commercial process. This is particularly important in oil and gas companies where leased assets frequently support major operational activities and involve multiple stakeholders.

Improved Financial Reporting

A consistent approach to IFRS 16 supports more reliable recognition, measurement, presentation, and disclosure of lease-related transactions. Finance teams gain a clearer framework for reviewing lease information and maintaining appropriate supporting records.

Stronger Joint Venture Charging

Joint venture charging requires accurate identification and allocation of relevant costs. Understanding lease cost allocation to partners helps organisations establish more consistent processes for determining the costs attributable to participating parties.

Better Cost Recovery Control

Lease accounting decisions can influence the classification and treatment of costs passed through joint operating arrangements. A stronger understanding of the impact on cost recovery supports more controlled partner billing and reduces the risk of inconsistent treatment.

Improved Contract Management

Finance professionals gain stronger capabilities for identifying accounting implications within commercial agreements. This improves communication between accounting, procurement, legal, commercial, and asset management functions.

More Effective Lease Modification Management

Changes to contractual arrangements can create accounting consequences that require timely assessment. A structured lease modification and remeasurement process helps organisations respond consistently when contracts are amended.

Stronger Audit Preparation

Clear documentation of lease assessments, calculations, contractual terms, modifications, and partner allocations supports more efficient audit review. Teams develop a more organised approach to maintaining evidence behind accounting conclusions.

Better Financial Planning

Lease liabilities, right-of-use assets, lease expenses, and payment obligations affect financial planning processes. Stronger lease information improves the quality of budgeting, forecasting, and financial analysis.

Consistent Treatment Across Operations

Oil and gas groups often operate across multiple assets, business units, countries, and joint ventures. A common IFRS 16 framework supports greater consistency in the assessment and reporting of similar arrangements.

Improved Cross-Functional Governance

The course establishes a common technical language for finance, procurement, commercial, legal, operations, and joint venture teams. Better communication supports faster identification of accounting issues and more effective control over contractual changes.

Personal impact

Participants develop practical expertise that strengthens their contribution to petroleum finance and financial reporting activities.

Stronger IFRS 16 Expertise

Participants develop a practical understanding of IFRS 16 that can be applied to operational leases and complex contractual arrangements rather than relying solely on high-level technical knowledge.

Advanced Lease Assessment Skills

Participants learn how to analyse contractual terms, identify relevant lease characteristics, assess measurement requirements, and document accounting conclusions.

Improved Joint Venture Capability

Professionals working with joint operating arrangements gain stronger knowledge of joint operation lease treatment and partner cost allocation. This supports more accurate communication with operators and participating partners.

Better Modification Analysis

Participants develop a structured approach to reviewing contractual changes and determining when lease modification and remeasurement considerations arise.

Stronger Commercial Awareness

Finance professionals gain a better understanding of how contractual terms influence accounting, charging, cost recovery, and reporting.

Improved Audit Communication

Participants become better equipped to explain lease assessments, calculations, partner allocations, modifications, and disclosures to auditors and internal stakeholders.

Broader Career Capability

The knowledge gained supports professionals working across petroleum accounting, IFRS reporting, joint venture finance, financial control, commercial finance, procurement, and asset-related financial management.

Who should attend

Petroleum Accountants

Suitable for accountants responsible for recording, analysing, reconciling, and reporting lease-related transactions within oil and gas operations.

IFRS and Financial Reporting Professionals

Relevant for professionals responsible for IFRS reporting, technical accounting, financial statements, and disclosure preparation.

Joint Venture Accountants

Designed for professionals managing partner accounting, joint venture billing, cost allocation, and financial reporting.

Finance Managers and Controllers

Useful for managers overseeing financial reporting, controls, accounting policies, and financial governance across petroleum operations.

Commercial and Contracts Professionals

Provides commercial teams with a stronger understanding of how contractual provisions influence lease accounting and partner charging.

Procurement Professionals

Relevant for procurement teams involved in equipment, facilities, vessels, property, infrastructure, and service arrangements containing lease components.

Asset and Operations Professionals

Supports operational personnel involved in asset utilisation, contractual arrangements, and information provided to finance teams.

Internal Audit Professionals

Useful for auditors reviewing lease controls, financial reporting processes, partner charging, and supporting documentation.

Senior Finance Professionals

Appropriate for experienced professionals seeking stronger capability in complex lease arrangements, joint venture accounting, and petroleum financial reporting.

Course outline

This module establishes the core principles required to assess lease arrangements within petroleum operations. It examines how IFRS 16 applies to assets commonly used across exploration, development, production, processing, transportation, storage, and corporate activities.

  1. IFRS 16 Leases

    • Establishes accounting requirements for leases from the lessee perspective

    • Requires recognition of right-of-use assets and lease liabilities for applicable leases

    • Provides principles for lease measurement, reassessment, presentation, and disclosure

    • Provides the central accounting framework for the course

    Learning Outcomes

    • Identify relevant lease arrangements within petroleum contracts

    • Explain the principal accounting mechanics under IFRS 16

    • Assess identified assets and relevant rights

    • Understand the relationship between lease terms and financial reporting

    • Establish a structured process for reviewing lease arrangements

This module focuses on the application of lease accounting principles within joint operations and shared petroleum activities. It examines how finance teams assess contractual responsibilities and develop consistent approaches to lease cost allocation to partners.

  1. IFRS 11 Joint Arrangements

    • Provides principles for accounting for interests in joint arrangements

    • Distinguishes joint operations from joint ventures

    • Requires consideration of rights and obligations arising from joint arrangements

    • Provides important context for assessing lease-related activities within shared operations

    Learning Outcomes

    • Assess lease arrangements in joint operating environments

    • Apply appropriate joint operation lease treatment

    • Develop structured approaches to lease cost allocation to partners

    • Identify information required for accurate partner charging

    • Connect lease accounting with cost recovery processes

    • Improve reconciliation between lease records and joint venture charges

This module addresses changes to existing lease arrangements and the accounting consequences of contractual amendments. Participants examine how modifications, changes in consideration, lease term changes, and variable lease payments affect financial reporting.

  1. IAS 1 Presentation

    • Establishes general principles for presentation of financial statements

    • Supports appropriate classification and presentation of material financial information

    • Provides context for communicating the financial effects of lease-related accounting decisions

    • Supports consistency in financial statement presentation

    Learning Outcomes

    • Identify events that require reassessment of lease accounting

    • Analyse lease modification and remeasurement requirements

    • Assess changes to lease scope and consideration

    • Evaluate relevant variable lease payments

    • Document modification assessments clearly

    • Understand how changes affect financial reporting information

This module examines more complex transaction structures involving the transfer and subsequent use of assets and arrangements where leased assets are provided to another party. The focus remains on practical application within oil and gas asset environments.

  1. IFRS 15 Revenue

    • Provides principles for assessing whether a transaction contains a sale

    • Establishes a framework for evaluating transfer of control

    • Provides relevant guidance when assessing sale and leaseback transactions

    • Supports the analysis of asset transfer arrangements alongside IFRS 16

    Learning Outcomes

    • Analyse sale and leaseback structures

    • Identify relevant considerations when assessing asset transfers

    • Understand the relationship between IFRS 15 and IFRS 16 in applicable transactions

    • Assess subleasing arrangements

    • Identify information required for appropriate accounting treatment

    • Improve documentation of complex lease transactions

This module brings the course together by focusing on lease disclosure requirements, reporting controls, documentation, reconciliation, and governance. Participants develop an integrated approach to maintaining reliable lease information across petroleum organisations and joint venture structures.

  1. IAS 7 Cash Flows

    • Establishes requirements for reporting cash flows and related movements

    • Provides relevant context for presenting lease-related cash flow information

    • Supports understanding of the relationship between lease payments and cash flow reporting

    • Helps finance teams maintain consistent reporting classifications

    Learning Outcomes

    • Identify key lease disclosure requirements

    • Prepare supporting information for financial reporting

    • Strengthen lease documentation and governance

    • Improve reconciliation between contractual, accounting, and partner records

    • Support audit requests with structured evidence

    • Integrate lease information into broader financial reporting processes

    • Establish stronger controls over lease data and reporting

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course.

The certificate recognises completion of the training programme and participation in the course requirements. Attendees must meet the required attendance requirement and complete the scheduled course activities to receive the Certificate of Completion.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the IFRS 16 – Leases: JV Charging & Modifications Training Course cover?

The course covers IFRS 16 – Leases with a specific focus on oil and gas operations, joint venture charging, partner cost allocation, lease modifications, remeasurement, variable lease payments, sale and leaseback transactions, subleasing arrangements, and disclosure requirements.

Who is this IFRS 16 course designed for?

The course is designed for petroleum accountants, IFRS and financial reporting professionals, joint venture accountants, finance managers, financial controllers, commercial professionals, procurement specialists, internal auditors, and asset management personnel involved in lease-related activities.

How does the course address joint venture lease accounting?

The course examines joint operation lease treatment, lease cost allocation to partners, partner charging processes, supporting documentation, reconciliation, and the impact of lease accounting on cost recovery within shared petroleum activities.

Does the course cover lease modifications and variable payments?

Yes. Participants examine lease modification and remeasurement, changes in contractual terms, changes in lease scope, changes in consideration, and the treatment of relevant variable lease payments within oil and gas arrangements.

What certificate is provided after completing the course?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course and meeting the required attendance requirement.

Next: 05 Oct 2026

4 dates available

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