Saudi Aramco GI 204.002 IDENTIFYING AND ACCOUNTING FOR ENVIRONMENTAL LIABILITIES AND PROVISIONS

This Saudi Aramco General Instruction (GI) manual, specifically GI 204.002, provides a comprehensive framework for the identification, assessment, and accounting of environmental liabilities and provisions. It details the periodic reporting processes and assigns responsibilities for managing these financial obligations stemming from past environmental events.

The document covers essential topics such as defining legal and constructive obligations, assessing probable outflows, and the reliable estimation of these costs for financial reporting purposes under International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) 37. It outlines the roles and responsibilities of various departments including Environmental Protection Department (EPD), Financial Reporting & Tax Compliance Division (FR&TCD), and Proponents in the meticulous process of developing an Environmental Liability Matrix and ultimately recognizing provisions.

The instruction includes detailed appendices with decision flowcharts, liability matrices, and provision templates to guide accurate financial treatment. This document is critical for ensuring compliance and transparency in financial accounting for environmental responsibilities within Saudi Aramco.

Ideal for environmental accountants, financial analysts, HSE managers, and compliance officers working within the oil and gas industry.