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Institute For Oil & Gas Training
OGI-1129 New

IFRS 6 – Exploration & Evaluation Assets: Impairment Training Course

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

IFRS 6 – Exploration & Evaluation Assets is a critical financial reporting area for oil and gas organisations managing exploration expenditure, technical uncertainty, acreage portfolios and impairment decisions. The IFRS 6 – Exploration & Evaluation Assets: Impairment Training Course from Institute For Oil & Gas Training develops the professional capability required to assess carrying amounts, identify impairment indicators and apply appropriate accounting treatment to exploration and evaluation assets.

Exploration and evaluation activities involve significant financial commitments before commercial viability is established. Oil and gas companies therefore require disciplined processes for recognising, measuring, reviewing and disclosing exploration and evaluation assets. Decisions relating to unsuccessful wells, expiry of exploration rights, relinquishment of acreage and changes in exploration strategy directly affect the carrying amount of E&E assets and the quality of financial reporting.

This course addresses the practical gap between accounting requirements and operational information generated by exploration teams, finance departments, asset managers and senior decision-makers. It focuses on how accounting professionals interpret technical and commercial developments and translate them into appropriate impairment assessments under IFRS 6 and related IFRS requirements.

Participants examine the relationship between exploration rights, geological findings, drilling results, development decisions and financial reporting. The course also addresses how impairment indicators arise from operational events and how organisations establish a robust carrying amount review process. Particular attention is given to the treatment of unsuccessful well expenditure, expiry of exploration rights, relinquishment of acreage and changes in the recoverability of E&E assets.

A central focus is the interaction between IFRS 6 and IAS 36 when impairment indicators exist. Participants develop a structured understanding of when an impairment review is required, how relevant assets are assessed, how impairment losses are measured and how cash generating unit allocation for E&E is approached when assets progress beyond the exploration and evaluation phase.

The course is designed for corporate environments where financial reporting decisions depend on collaboration between finance, accounting, exploration, subsurface, commercial, legal and asset management teams. Institute For Oil & Gas Training uses industry-based scenarios to connect accounting principles with real operational circumstances encountered by upstream oil and gas organisations.

The programme also strengthens understanding of disclosure requirements. Participants examine the information needed to explain impairment losses, significant judgements, accounting policies and the financial impact of exploration and evaluation activities. This supports clearer communication between finance teams, management, auditors and other stakeholders.

The course provides a practical framework for reviewing E&E asset balances throughout the exploration lifecycle. It helps professionals establish consistent decision-making processes rather than treating impairment assessment as a purely year-end accounting exercise. The emphasis remains on evidence, documented judgement, asset-level information and alignment between operational developments and financial reporting.

Institute For Oil & Gas Training delivers the programme for professionals who need to manage IFRS 6 requirements within complex oil and gas portfolios. The content is relevant to exploration companies, integrated energy businesses, joint venture operations and corporate finance functions responsible for upstream financial reporting.

Objectives

  • Understand the purpose and application of IFRS 6 – Exploration & Evaluation Assets within upstream oil and gas operations.

  • Distinguish exploration and evaluation expenditure from subsequent development expenditure and other categories of upstream costs.

  • Identify impairment indicators affecting exploration and evaluation assets.

  • Assess the accounting implications of the expiry of exploration rights.

  • Evaluate the financial reporting consequences of relinquishment of acreage.

  • Understand appropriate treatment of unsuccessful well expenditure.

  • Strengthen the carrying amount review process for E&E assets.

  • Assess how operational information supports impairment conclusions.

  • Understand the interaction between IFRS 6 and IAS 36.

  • Examine cash generating unit allocation for E&E when assets progress through the exploration lifecycle.

  • Understand the measurement and recognition principles associated with impairment losses.

  • Improve documentation of impairment judgements and supporting evidence.

  • Strengthen communication between finance, exploration, technical and commercial functions.

  • Improve the quality and consistency of impairment assessments across upstream portfolios.

  • Understand the requirements surrounding disclosure of impairment losses.

  • Apply relevant IFRS requirements to realistic oil and gas exploration scenarios.

  • Develop a structured approach to reviewing E&E asset balances at reporting dates and following significant operational events.

Training methodology

Institute For Oil & Gas Training delivers this programme through a corporate and application-focused methodology designed around the financial and operational realities of oil and gas exploration.

Industry Case Studies

Participants work through realistic exploration and evaluation scenarios involving drilling results, acreage positions, exploration rights and changes in development expectations. Each case study links operational events to accounting consequences and demonstrates how impairment indicators develop across the asset lifecycle.

Practical Accounting Exercises

Exercises focus on carrying amount review, identification of impairment indicators and assessment of expenditure associated with exploration activities. Participants evaluate financial information and determine the accounting considerations arising from different operational circumstances.

Unsuccessful Well Scenarios

Dedicated scenarios examine unsuccessful well write-off decisions and the information required to support appropriate accounting treatment. Participants consider drilling outcomes alongside exploration plans, remaining prospects and management decisions.

Acreage and Licence Scenarios

The programme uses scenarios involving expiry of exploration rights and relinquishment of acreage to demonstrate how changes in legal and commercial rights influence the continued recognition and recoverability of E&E assets.

Impairment Assessment Simulations

Participants follow structured impairment assessment processes using hypothetical upstream portfolios. These simulations examine the movement from initial indicators through assessment, measurement, recognition and disclosure of impairment losses.

Group Analysis

Group exercises bring finance and operational perspectives together. Participants analyse the same exploration scenario from accounting, technical, commercial and asset management viewpoints, reinforcing the importance of reliable cross-functional information.

Financial Reporting Workshops

Workshops focus on how impairment conclusions are documented and communicated within corporate reporting processes. Participants examine the relationship between accounting judgements, supporting evidence and financial statement disclosures.

Real-World Decision Scenarios

The course incorporates practical situations such as disappointing exploration results, delayed development plans, licence expiry, acreage relinquishment and changes in management strategy. These scenarios help participants understand how operational decisions affect financial reporting.

Organisational impact

Effective E&E impairment management supports stronger financial control across the exploration portfolio. Institute For Oil & Gas Training enables organisations to establish a clearer connection between operational developments and accounting decisions.

Stronger Asset Review Processes

The course strengthens the organisation’s approach to carrying amount review. Finance teams gain a structured basis for obtaining relevant information from exploration and asset management functions and incorporating that information into financial reporting processes.

Improved Impairment Identification

Early recognition of impairment indicators improves the consistency of management reviews. Organisations gain stronger processes for considering unsuccessful drilling results, changes in exploration plans, expiry of rights, acreage relinquishment and other developments affecting recoverability.

Better Financial Reporting Quality

Consistent application of IFRS 6 and related impairment requirements supports more reliable financial statements. The course strengthens the ability of finance teams to document accounting conclusions and align reporting decisions with operational evidence.

Improved Cross-Functional Coordination

Exploration and evaluation impairment decisions depend on information that sits across several departments. The course encourages structured collaboration between finance, geology, geophysics, drilling, subsurface, commercial, legal and asset management teams.

More Consistent Treatment of Unsuccessful Wells

Unsuccessful well expenditure requires careful consideration within the wider exploration portfolio. Improved understanding of the relevant accounting requirements helps organisations establish consistent review and write-off processes supported by appropriate evidence.

Stronger Licence and Acreage Controls

The expiry of exploration rights and relinquishment of acreage can directly affect asset recoverability. A stronger understanding of these events enables finance and asset teams to incorporate licence and acreage developments into timely financial reviews.

More Robust Audit Support

Clear impairment methodologies, supporting documentation and well-defined management judgements provide a stronger basis for discussions with internal and external audit functions. Teams gain greater awareness of the evidence required to support reported carrying amounts and impairment conclusions.

Improved Management Visibility

A disciplined impairment process provides management with better visibility over assets that no longer support the same level of expected economic benefit. This strengthens portfolio monitoring and supports informed management review of exploration expenditure.

Better Disclosure Processes

The course strengthens understanding of disclosure of impairment losses and related financial reporting information. Organisations benefit from clearer communication of material impairment events and the accounting consequences of exploration portfolio changes.

Consistent Corporate Governance

Standardised review practices help organisations maintain consistency across business units, subsidiaries, joint venture interests and exploration portfolios. This supports stronger financial governance where multiple assets and reporting teams operate across different jurisdictions.

Personal impact

Participants develop practical capabilities that directly support their responsibilities in upstream financial reporting and asset management.

IFRS Technical Capability

Professionals strengthen their understanding of IFRS 6 and its relationship with impairment requirements under IAS 36. They gain a clearer framework for applying accounting principles to exploration and evaluation activities.

Impairment Assessment Skills

Participants learn to identify relevant impairment indicators and assess the accounting implications of operational developments. This supports more structured and defensible impairment reviews.

Asset-Level Analysis

The programme develops the ability to connect individual exploration assets, licences, wells and acreage positions with financial reporting considerations. Participants gain a stronger understanding of how asset information influences carrying amounts.

Commercial Awareness

Finance professionals develop greater awareness of how exploration strategy, drilling results, licence rights and portfolio decisions influence accounting outcomes.

Cross-Functional Communication

Participants improve their ability to communicate with technical and operational teams when obtaining information required for financial reporting. This supports more effective discussions around exploration results, asset status and recoverability.

Documentation Capability

The course strengthens the ability to document impairment assessments, accounting judgements and supporting evidence in a structured corporate format.

Career Development

Professionals enhance a specialist capability relevant to upstream accounting, IFRS reporting, financial control, audit support, asset accounting and corporate reporting functions.

Reporting Confidence

Participants gain a more structured approach to discussing E&E balances, impairment indicators, write-offs and disclosure requirements with senior management, auditors and other stakeholders.

Who should attend

  • Financial Controllers — Strengthen control over E&E asset accounting, impairment reviews and financial reporting.

  • Financial Reporting Managers — Improve application of IFRS 6 and related impairment requirements within corporate reporting.

  • Upstream Accountants — Develop practical skills for accounting for exploration and evaluation expenditure.

  • IFRS Specialists — Strengthen technical understanding of E&E impairment assessments and disclosures.

  • Management Accountants — Improve analysis of exploration expenditure and asset carrying amounts.

  • Internal Auditors — Enhance review capability over E&E accounting processes and impairment controls.

  • External Audit Professionals — Develop stronger understanding of upstream impairment evidence and accounting judgements.

  • Finance Managers — Improve oversight of exploration portfolio reporting and impairment processes.

  • Exploration Managers — Understand how operational exploration decisions affect financial reporting.

  • Asset Managers — Strengthen awareness of the financial reporting implications of asset performance and portfolio changes.

  • Commercial Managers — Understand how licence, acreage and development decisions influence E&E asset accounting.

  • Petroleum Economists — Connect economic and portfolio analysis with impairment assessment requirements.

  • Joint Venture Accountants — Improve consistency when assessing exploration expenditure and impairment considerations across participating interests.

  • Corporate Reporting Teams — Strengthen preparation and review of impairment-related financial statement information.

  • Senior Finance Professionals — Enhance governance and oversight of IFRS reporting across upstream operations.

Course outline

This module establishes the financial reporting framework for exploration and evaluation activities. It examines the nature of E&E assets, the accounting lifecycle from initial expenditure through evaluation and transition to development, and the information required to support appropriate carrying amounts.

  1. IFRS 6

    • Establishes specific financial reporting requirements for exploration and evaluation expenditure.

    • Addresses recognition and measurement of exploration and evaluation assets.

    • Provides the basis for impairment assessment of E&E assets under the standard.

    • Supports consistent financial reporting during the exploration and evaluation phase.

    Learning Outcomes

    • Explain the purpose and scope of IFRS 6.

    • Distinguish E&E expenditure from other upstream expenditure.

    • Understand the lifecycle of an exploration and evaluation asset.

    • Apply structured carrying amount review principles.

    • Identify information required to support E&E accounting decisions.

This module focuses on the operational and financial events that trigger detailed impairment assessment. Participants examine how unsuccessful exploration activity, licence developments and changes in technical or commercial expectations influence the recoverability assessment.

  1. IAS 36

    • Establishes principles for identifying and measuring impairment of assets.

    • Provides requirements for assessing whether an asset is impaired.

    • Supports measurement of recoverable amounts when impairment indicators exist.

    • Provides the framework for impairment loss recognition and reversal where applicable.

    Learning Outcomes

    • Identify significant impairment indicators affecting E&E assets.

    • Assess how operational events influence financial reporting.

    • Understand the implications of unsuccessful exploration activity.

    • Evaluate the accounting significance of licence expiry and acreage relinquishment.

    • Develop a structured impairment review process.

This module addresses the practical assessment of carrying amounts once impairment indicators have been identified. It focuses on recoverability, asset groupings and cash generating unit allocation for E&E as exploration assets progress through different stages of development.

  1. IAS 36 Impairment

    • Provides the principal requirements for impairment measurement.

    • Establishes recoverable amount concepts used in impairment assessment.

    • Addresses cash generating units and allocation of impairment losses.

    • Provides requirements for recognising and measuring impairment losses.

    Learning Outcomes

    • Understand the principal stages of impairment measurement.

    • Apply carrying amount review procedures.

    • Understand cash generating unit allocation for E&E.

    • Analyse impairment measurement information.

    • Document impairment conclusions using relevant financial and operational evidence.

This module examines the accounting consequences of exploration portfolio changes. Participants focus on unsuccessful wells, expiry of rights, relinquishment of acreage and changes in exploration strategy that affect the continued recognition of E&E assets.

  1. IAS 16 Property Plant Equipment

    • Provides accounting principles relevant to tangible assets arising after exploration and evaluation activities.

    • Supports appropriate distinction between exploration assets and subsequent asset classes.

    • Provides guidance relevant to recognition and derecognition of property, plant and equipment.

    • Helps establish the accounting framework when projects progress beyond exploration and evaluation.

    Learning Outcomes

    • Analyse the accounting impact of unsuccessful wells.

    • Understand the financial reporting implications of relinquishment of acreage.

    • Assess the consequences of expiry of exploration rights.

    • Distinguish exploration-stage assets from subsequent asset classifications.

    • Strengthen documentation of asset derecognition and portfolio changes.

This module brings together impairment assessment, accounting judgements and disclosure requirements. Participants examine how organisations communicate E&E impairment events and related information while maintaining strong internal governance and reporting controls.

  1. IAS 1 Presentation

    • Establishes principles for presentation of financial statements.

    • Supports clear and relevant presentation of material financial information.

    • Provides requirements relevant to financial statement structure and disclosure.

    • Helps organisations communicate significant accounting information consistently.

    Learning Outcomes

    • Understand key disclosure considerations for E&E impairment.

    • Explain the financial reporting impact of impairment losses.

    • Improve documentation supporting significant accounting judgements.

    • Strengthen governance over exploration and evaluation reporting.

    • Integrate operational, accounting and disclosure information into a coherent reporting process.

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. The certificate is issued to participants who meet the course attendance requirement and complete the programme.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

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 6 – Exploration & Evaluation Assets: Impairment Training Course cover?

The course covers E&E asset recognition, impairment indicators, carrying amount review, unsuccessful well write-off, expiry of exploration rights, relinquishment of acreage, cash generating unit allocation for E&E and disclosure of impairment losses.

Who is the course designed for?

The programme is designed for finance professionals, financial controllers, IFRS specialists, accountants, auditors, exploration managers, asset managers, commercial professionals, petroleum economists and senior finance personnel involved in upstream oil and gas operations.

How is the course delivered?

Institute For Oil & Gas Training uses corporate case studies, practical accounting exercises, impairment assessment simulations, group analysis, financial reporting workshops and realistic oil and gas scenarios.

How does the course address unsuccessful exploration activity?

The programme examines unsuccessful well write-off considerations and explains how drilling results, exploration plans, licence status and changes in portfolio strategy influence the assessment of E&E assets and impairment requirements.

What certificate do participants receive?

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

Next: 05 Oct 2026

4 dates available

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