Solve problem using the impairment guidance

Assignment Help Accounting Basics

Reference no: EM132070893

Question: In a recent Wall Street Journal article, the New York Attorney General (the AG) raised concerns about EXXON's financial reporting. Specifically, the AG challenged EXXON's ability to avoid recording an impairment charged on its Oil and Gas Assets even though the price of oil has fallen approximately 50% since mid- 2014 from $94 to $47 per barrel. EXXON argues that an impairment is not nessary based on US GAAP. Assuming EXXON's Oil and Gas assets have a book value of approximately $203 billion and its total estimated number of barrel in the ground appro. 19 billion and it costs appro. $12 per barrel for EXXON to get the oil out of the ground, what do you say, based on your understanding of the impairment guidance?

Reference no: EM132070893

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