3Andes Energia Public Listed Company
ANDES ENERGIA PUBLIC LISTED COMPANY
Andes Energia is a United Kingdom public listed company operative on Oil and Gas. Its operative interests focus on the onshore blocks in South America Countries such as Argentina, Paraguay, Brazil and Colombia. As such, its main interest is focused on exploration, development and the ability to produce vast assets. Currently, Andes Energia company has managed to pose a record of 8.15 million acres of exploration, having a capacity of 22MMbbl reserves and 590.13 MMbbl to develop on its resources (AEN 2015). As such, the company has been continuously listed on AIM London Stoke Exchange market and the Buenos Aires Stoke Exchange market. Based on financial, the company managed to indicate total revenue of US$’m 22.5 in 2013, US$’m 48.2 in 2014, having an operative profit/ (loss) of US$’m ** (3.9) in 2013, **5.5 in 2014 while the company indicated net operative generated from the operations at US$’m 3.4 in 2013 while in 2014 the operative costs improved to US$’m 14.6 (Finncap 2015).
National Reporting and Regulatory Environment of Andes Energia Operation
The regulatory environment for Andes Energia greatly adheres to the adjudicated exploration and production licenses given. Additionally, the company tends to receive annual reserves certificates that tend to justify that the company exploration and production of oil and gas has been done based on the scope of the company. The reserve certificate has to align with the company licenses issued for the operative purposes. The company consistently applies the international accounting standards annually indicating the company strategic report regarding the overview of the company, the business review of the company and the operational review of the company. In its operative countries, the company tends the indicate the earning per share in each country, the business key performance indicators, the expected future development in the operative area, principle risks and uncertainties experienced and eradicated.
The company tends to have a consolidated income statement annually indicating gross profits, operative profit and losses, losses after dilution of the ordinary share and taxation. A consolidated income statement is included indicating total comprehensive losses and attribution annually. Additionally, the structured financial position statement indicating values generated on the business assets, liability, capital and reserves advocate for international accounting standards implemented within the company. The inclusion of the consolidated statements based on equity statements and cash flow sheets indicates a comprehensive accounting from the company.
Specific Accounting Items and Application of International Standards Accounting
One of the specific accounting item for Andes Energia involve current assets, non-current assets, Capital and reserves, current liabilities and non-current liabilities structured in Andes Energia statement for financial position. . The current assents for the company include inventories, sale financial assets, trade and receivables. The non-current assets include the non- tangible assets with an inclusive of differed income tax assets. Both the current and non current liabilities focus on trade, other payables and taxes. The capital reserves focuses on the company share capital, the company premium account and the retail earning. Cash flow statement is another item includes structures the accounting items for Andes. The cash flow statement identifies the company purchase of financial assets, exploration assets, acquisition of subsidiaries, funds borrowed, interests paid and received, operating activities, investing activities and the effect of foreign exchange rates on the company.
IFRS in United Kingdom
The adoption of the IFRS in United Kingdom publicly listed companies was based on company’s consolidation financial statements whose security trade is basically controlled by the market. As previously a member of the European Union before the recent exists, the U.K publicly listed companies were subjected to IAS regulations of the E.U (Moizer 2013). The company adoption should therefore be listed in London Exchange Main Market. The listing needs to publish the company’s functional income statements, the costs of the sales, the distribution costs, administrative costs among others (Cairns 2012). Additionally, in UK, IFRS is not only applicable to the listed companies, it is also consolidated to the company’s personal accounts and the consolidated account based on strategic choice of the company. The use of the IFRS is enforced only to reduced disclosure framework whereby the company’s subsidiaries are and ultimate parents have adopted the IFRS, applicable to companies holding the insurance contracts and the incorporation of the companies into law and order through a formal process of adoption of IRFS as per the profile of the European Union policies ( Dunne 2013)
Andes Energia has a close global competitor named as Borders and Southern Oil and Gas Exploration company among other companies. Though the company experiences technical rigor, commercial discipline and corporate responsibility from Boarders and Southern Oil and Gas company, Andes Energia proves to be very competitive due to its higher profitability that gradually increases yearly its existing distribution and sales network that has managed to tap both the domestic and international market across countries in South America (Proactive Investors 2016). Additionally, the country is under the provision of the momentary assistance hence a competitive strategy for across its global competitors. The public listed company might prove to be more competitive if it continues to strategies on its growth rates for profitability purposes based on the growing demand for the Oil and Gas companies that are publicly listed. Contrarily, the country might undergo accounting challenges hence posing an advantage to its competitors. This might be based on the arising small business units that have a fair IFRS policies, the future profitability due to an increasing major players in Oil and Gas companies and the tax structures that might be favorable in different countries while in Argentina the tax policies are more economical. Additionally, Andes Energia has a fluctuating net income annually whereby from 2013 to 2015 the net income has been dropping (The Financial Times 2016). Contrarily, the Andes company can take advantage of unrealized gains of the exchange rates from the deposits held in US$. As such, the competition tends to boost the efficiency and effective functioning of both companies hence economic stimulus within the continents.
AEN. 2015, ‘Andes Energia plc Annual Reports and Financials Statements for the Ending year 2015’. Available from: http:// andesenergiaplc.com.ar/wp-content/…/2015—Andes—Annual—Report.pdf. [30 June 2016]
Cairns, D 2012, ‘The Implication of IFRS for UK companies’, The International Journal of Disclosure and Governance, vol. 1, no. 2, pp. 112.
Dunne, T 2013, The Implementation of IFRS in the UK, Italy and Ireland, CA House, 21 Haymarket Yards, Edinburgh.
Finncap, 2015, ‘Companies Aiming for Good Revenues. The Aim Journal of Alternative Investment Market’. Available from: http:// link.springer.com/…/10.1007%2F978-94-…Springer Science+Business Media [30 June 2016]
Moizer, P 2013, ‘A Survey of the Methods used by UK Investment Analysis to Appraise Investments in Ordinary Shares’, Accounting and Business Research, Summer, pp. 970. Available from: http:// wrap.warwick.ac.uk/29447/ [30 June 2016]
Proactive Investors, 2016, ‘Andes Energia Sees Steady Production in Colombia and Argentina’. Available from: http://
… [30s-sees-energia-andes.co.uk/…/proactiveinvestorswww. June 2016]
The Financial Times, 2016,’ Andes Energia Annual Report and Financial Statements for the Year Ending December 2015’. Available from: http://announce.ft.com › Markets › MarketsData [30 June 2016]