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DVN » Topics » Use of Estimates in the Preparation of Financial Statements

These excerpts taken from the DVN 10-K filed Feb 27, 2009.
Use of Estimates in the Preparation of Financial Statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:
 
  •  estimates of proved reserves and related estimates of the present value of future net revenues;
 
  •  the carrying value of oil and gas properties;
 
  •  estimates of the fair value of reporting units and related assessment of goodwill for impairment;
 
  •  asset retirement obligations;
 
  •  income taxes;
 
  •  derivative financial instruments;


81

Table of Contents

 
DEVON ENERGY CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
 
  •  obligations related to employee benefits; and
 
  •  legal and environmental risks and exposures.
 
Use of Estimates in the Preparation of Financial Statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:
 
  •  estimates of proved reserves and related estimates of the present value of future net revenues;
 
  •  the carrying value of oil and gas properties;
 
  •  estimates of the fair value of reporting units and related assessment of goodwill for impairment;
 
  •  asset retirement obligations;
 
  •  income taxes;
 
  •  derivative financial instruments;


81

Table of Contents

 
DEVON ENERGY CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
 
  •  obligations related to employee benefits; and
 
  •  legal and environmental risks and exposures.
 
Use of
Estimates in the Preparation of Financial
Statements


 





The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual amounts could
differ from these estimates, and changes in these estimates are
recorded when known. Significant items subject to such estimates
and assumptions include the following:


 














































































  • 
estimates of proved reserves and related estimates of the
present value of future net revenues;
 
  • 
the carrying value of oil and gas properties;
 
  • 
estimates of the fair value of reporting units and related
assessment of goodwill for impairment;
 
  • 
asset retirement obligations;
 
  • 
income taxes;
 
  • 
derivative financial instruments;





81




Table of Contents





 




DEVON
ENERGY CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)

 


 






























  • 
obligations related to employee benefits; and
 
  • 
legal and environmental risks and exposures.


 






Use of
Estimates in the Preparation of Financial
Statements


 





The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual amounts could
differ from these estimates, and changes in these estimates are
recorded when known. Significant items subject to such estimates
and assumptions include the following:


 














































































  • 
estimates of proved reserves and related estimates of the
present value of future net revenues;
 
  • 
the carrying value of oil and gas properties;
 
  • 
estimates of the fair value of reporting units and related
assessment of goodwill for impairment;
 
  • 
asset retirement obligations;
 
  • 
income taxes;
 
  • 
derivative financial instruments;





81




Table of Contents





 




DEVON
ENERGY CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)

 


 






























  • 
obligations related to employee benefits; and
 
  • 
legal and environmental risks and exposures.


 






These excerpts taken from the DVN 10-K filed Jun 9, 2008.
Use of Estimates in the Preparation of Financial Statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:
 
  •  estimates of proved reserves and related estimates of the present value of future net revenues;
 
  •  the carrying value of oil and gas properties;
 
  •  estimates of the fair value of reporting units and related assessment of goodwill for impairment;
 
  •  asset retirement obligations;
 
  •  income taxes;
 
  •  derivative financial instruments;


73

Table of Contents

 
DEVON ENERGY CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
 
  •  obligations related to employee benefits; and
 
  •  legal and environmental risks and exposures.
 
Use of
Estimates in the Preparation of Financial
Statements


 



The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual amounts could
differ from these estimates, and changes in these estimates are
recorded when known. Significant items subject to such estimates
and assumptions include the following:


 


































































  • 
estimates of proved reserves and related estimates of the
present value of future net revenues;
 
  • 
the carrying value of oil and gas properties;
 
  • 
estimates of the fair value of reporting units and related
assessment of goodwill for impairment;
 
  • 
asset retirement obligations;
 
  • 
income taxes;
 
  • 
derivative financial instruments;





73




Table of Contents





 




DEVON
ENERGY CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)

 


 


























  • 
obligations related to employee benefits; and
 
  • 
legal and environmental risks and exposures.


 




These excerpts taken from the DVN 10-K filed Feb 28, 2008.
Use of Estimates in the Preparation of Financial Statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:
 
  •  estimates of proved reserves and related estimates of the present value of future net revenues;
 
  •  the carrying value of oil and gas properties;
 
  •  estimates of the fair value of reporting units and related assessment of goodwill for impairment;
 
  •  asset retirement obligations;
 
  •  income taxes;
 
  •  derivative financial instruments;


73

Table of Contents

 
DEVON ENERGY CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
 
  •  obligations related to employee benefits; and
 
  •  legal and environmental risks and exposures.
 
Use of
Estimates in the Preparation of Financial
Statements


 



The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual amounts could
differ from these estimates, and changes in these estimates are
recorded when known. Significant items subject to such estimates
and assumptions include the following:


 


































































  • 
estimates of proved reserves and related estimates of the
present value of future net revenues;
 
  • 
the carrying value of oil and gas properties;
 
  • 
estimates of the fair value of reporting units and related
assessment of goodwill for impairment;
 
  • 
asset retirement obligations;
 
  • 
income taxes;
 
  • 
derivative financial instruments;





73




Table of Contents





 




DEVON
ENERGY CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)

 


 


























  • 
obligations related to employee benefits; and
 
  • 
legal and environmental risks and exposures.


 




This excerpt taken from the DVN 10-K filed Feb 28, 2007.
Use of Estimates in the Preparation of Financial Statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include estimates of proved reserves and related present value estimates of future net revenue, the carrying value of oil and gas properties, goodwill impairment assessment, asset retirement obligations, income taxes, valuation of derivative instruments, obligations related to employee benefits and legal and environmental risks and exposures.
 

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Feb 27, 2009
10-K (2 sections)
Jun 9, 2008
10-K (2 sections)
Feb 28, 2008
10-K
Feb 28, 2007

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