Accounting Theory and issue Assignment

Added on - 31 May 2021

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ACCOUNTING THEORY AND ISSUEKings Own IntsituteSubmitted by,Sachin BhattaraiID-Author Note
2ACCOUNTING THEORY AND ISSUETable of ContentsIntroduction......................................................................................................................................3Background of the company............................................................................................................3Accounting Issue.............................................................................................................................4Conceptual Framework....................................................................................................................5Critical Analysis..............................................................................................................................6Share price graph.............................................................................................................................8Conclusion.......................................................................................................................................8References........................................................................................................................................9
3ACCOUNTING THEORY AND ISSUEIntroductionThe issue that has been presented in the question refers to the fact that the corporateorganizations have to face accounting issues in the due course of business. This means that afirm might be subjected to fraudulent activities and the absence of the proper internal controls inthe corporate entity will result in the corporate organization going bankrupt. This particular studyfocuses upon one single corporate entity and the fraudulent or the scandalous activity that led toits downfall.The firm that has been chosen for the purpose of the study is of the name Osbidian Energy and islocated in Canada. Previously Known as Penn West Exploration Ltd, Osbidian Energy is aCanada based oil and natural gas production company. It is headquartered in Calgary, Alberta.Founded in 2005, till date it has over 300 employees. Going back to the history, being founded asPenn West Exploration Ltd, it operated its business in 30 areas, employing over 2000 employeeswith 15 executives. But after it changed into Osbidian Energy, it just has 300 employees withonly an executive team of five members.This particular study aims to look into the internal operations of the corporate entity and analyzesthe accounting statement of the organization in order to ensure the fact that the reportingframework has d been prepared in accordance to the general-purpose reporting framework.Background of the companyThe Calgary based Obsidian Energy Limited had been previously known as Penn WestExploration Ltd, Penn West Petroleum and Penn West Energy Trust. The corporate organizationhas its headquarters in western Canada. The oil fields that from where the energy resources havebeen derived are located in the three key areas of Alberta that are Pembina Cardium, Peace Riveroil sands and Alberta Viking. The total production of the corporate entity ranges between 31,000bbl on a daily basis.It can be further noted here that the corporate entity had been a member of the Toronto StockExchange. The company had faced financial difficulties in the financial year of when the pricesof the crude oil fell significantly. This had led to a major restructuring of the corporate entity.Moreover, it had been reported that the corporate entity had sold most of its assets over theperiod of the next two years for the purpose of reducing the debt (Williams and Dobelman 2017).
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