New Reporting for Resource Companies?By
The Securities & Exchange Commission (SEC) is under pressure to publish a final rule in June dictating new financial reporting requirements for companies involved in the commercial development of oil, natural gas, or minerals.
The proposed rule issued in December requires an energy company to provide information about the type and total amount of payments made for each project related to the commercial development of oil, natural gas, or minerals as well as information about the type and total amount of payments made to each government.
Companies are pressing the SEC to refine some of the key terms in the proposal. For example, Stephen Dyck, vice president and comptroller at Encana Corporation, wants the Commission to clarify that reporting only covers initial processing activities. Jane Michie, head of group tax at BHP Billiton, wants the final rule to include an automatic exemption when a company complies with a parallel European Union (EU) Directive.