Oil Mistakes In Corporate Accounting

Oil prices continually change. Accountants need numbers that don’t vary, at least long enough to see if everything adds up and balances. Oil companies pick a number for the value of their oil so they can estimate income and assets. Many corporations are about to adjust their numbers in a big way. For some of them, oil is only worth half of what it was the last time they picked a number for their analyses. The new numbers going into the spreadsheets are less likely to be $95 and more likely to be $55. The financial markets are about to see billions of dollars of value evaporate. This may affect loans, projections, jobs, and growth – and therefore, the economy.

“The Price Of Oil Is About To Blow A Hole In Corporate Accounting” – Bloomberg