Resource information
In the light of an emerging International Financial Reporting Standard (IFRS) for the extractive industries - which could give a significant boost to global efforts to better account for revenues from the extractive industries - this report argues that such standards should require upstream extractive industry operators to disclose revenue payments on a country-by-country basis.Country-by-country reporting, this report argues, are crucial in achieving greater transparency, and will allow for better informed decisions about companies engaged in the extractive sector. It will allow small and large shareholders including analysts and institutional investors, as well as other stakeholders, including governments and citizens, to know how much a company is earning and paying to governments in the different countries where it operates. Broadly speaking companies should make the following information available on a country-by-country basis:commercial performancetaxes and other benefits paid to governments reserves.In conclusion the paper argues that:the data which has been suggested be disclosed could be produced at relatively little cost because it should all already be available to the companies operating in this sectortany remaining cost is more than outweighed by the benefit this data will supply to investors and other users of the financial data published by the reporting entity within the upstream extractive industrytthe enhanced credibility of data produced will provide commercial benefit to companies operating in this sector by providing clear comment on:their commitment to transparency their acceptance of their obligations to the societies in which they operate their desire to avoid reputational risktheir commitment to their investors, wherever they might be located.
