The requirement for extended disclosures for oil and gas reserves described in Chapter 2 followed a Congressional hearing on the poor disclosures that Shell Oil had for its reserves. What are the advantages and disadvantages of having the FASB as opposed to Congress develop GAAP on oil and gas reserves?
Referring to the previous question on oil and gas reserves, what is the implication of having these disclosures required as part of the notes to the audited financial statements as opposed to other disclosures not in the financial statements?