The Accounting Treatment of Exploration Expenses for Petroleum Wells in Accordance with the Financial Accounting System and International Financial Reporting Standards: A Field Study on ENTP Company

Abstract

This study aims to demonstrate the accounting treatment of exploration expenses in accordance with the Financial Accounting System and the requirements of International Financial Reporting Standard (IFRS) 6. The objective is to develop accounting mechanisms that facilitate the application of international standards in this highly significant economic sector in Algeria. To achieve this goal, a field study was conducted on the National Well Company (ENTP). The study concluded that the successful efforts method serves as an important indicator for evaluating the performance of employees in the research and exploration department.