VPC Venture Prod.

These financial statements have been prepared in accordance with IFRS and IFRIC 
interpretations endorsed by the European Union (EU) and with those parts of the 
Companies Act 1985, applicable to companies reporting under IFRS. The financial 
statements have been prepared under the historical cost convention as modified 
by the revaluation of certain financial assets and liabilities (including 
derivative instruments). A summary of the more important Group accounting 
policies is set out below, together with an explanation of where changes have 
been made to previous policies on the adoption of new accounting standards in 
the year. 
 
 
Critical Estimates and Judgements 
 
 
The preparation of financial statements requires the use of estimates and 
assumptions that affect the reported amount of assets and liabilities at the 
date of the financial statements and the reporting amount of income and expenses 
during the year. Although these estimates are based on management's best 
knowledge of the amount, event or actions, actual results ultimately may differ 
from those estimates. 
 
 
The main estimates made by the Group included decommissioning estimates, 
estimates of future capital expenditures used in the calculation of 
depreciation, depletion and amortisation (DD&A) and hydrocarbon reserve 
estimates. These are described in more detail in the relevant accounting policy. 
 
 
The main judgements made by the Group included the forecasts and assumptions 
used in the impairment review of non-financial assets, tax provisioning, 
deferred tax asset recognition and future plans for the assets under 
construction. These are described in more detail in the relevant accounting 
policy. 
 
 
Consolidation 
 
 
Subsidiaries 
Subsidiaries are entities over which the Group has the power to govern the 
financial and operating policies, generally accompanying a shareholding of more 
than one half of the voting rights. The existence and effect of potential voting 
rights that are currently exercisable or convertible are considered when 
assessing whether the Group controls another entity. Subsidiaries are fully 
consolidated from the date on which control is transferred to the Group. They 
are de-consolidated from the date on which control ceases. 
 
 
The purchase method of accounting is used to account for the acquisition of 
subsidiaries by the Group. The cost of an acquisition is measured as the fair 
value of the assets given, equity instruments issued and liabilities incurred or 
assumed at the date of exchange, plus costs directly attributable to the 
acquisition. Identifiable assets acquired, liabilities and contingent 
liabilities assumed in a business combination are measured initially at their 
fair values at the acquisition date. The excess of the cost of acquisition over 
the fair value of the Group's share of the identifiable net assets acquired is 
recorded as goodwill. If the cost of acquisition is less than the fair value of 
the net assets of the subsidiary acquired, the difference is recognised directly 
in the income statement. 
 
 
Inter-company transactions, balances and unrealised gains on transactions 
between Group companies are eliminated as part of the consolidation process. 
Unrealised losses are also eliminated unless the transaction provides evidence 
of an impairment of the asset transferred. Accounting policies of subsidiaries 
have been changed where necessary to ensure consistency with the policies 
adopted by the Group. 
 
 
Investments in Associates 
 
 
The Group's investments in its associates are accounted for under the equity 
method of accounting. These are entities in which the Group has significant 
influence and which are neither a subsidiary nor a joint venture. The financial 
statements of the associates are used by the Group to apply the equity 
accounting method. The reporting dates of the associates and the Group are 
consistent. 
 
 
The investments in associates are carried in the balance sheet at cost plus 
post-acquisition changes in the Group's share of net assets of the associates, 
less any impairment in value. Where accounting policies of associates are 
inconsistent with those of the Group, an adjustment is made to the Group's share 
of net assets of the associate in order to reflect these differences. 
 
 
Joint Ventures 
 
 
The Group is engaged in oil and gas development and production through 
incorporated and unincorporated joint ventures. The income, expenses, assets and 
liabilities of those jointly controlled assets are included in the consolidated 
financial statements in proportion to the Group's interest 
 
 
Revenue Recognition 
 
 
Revenue from sales of oil and natural gas is recognised when the significant 
risks and rewards of ownership have been transferred, which is when title passes 
to the customer. For oil and natural gas, this generally occurs when the product 
is physically transferred into a vessel, pipe or other delivery mechanism. 
 
 
Revenue resulting from the production of oil and natural gas properties in which 
Venture has an interest with other producers is recognised on the basis of 
Venture's working interest (entitlement method). Consequently, for sales in 
respect of oil liftings sold, adjustments for overlift (liftings greater than 
production entitlement) and underlift (production entitlement greater than 
liftings) are recorded against cost of sales at market value. 
 
 
Tariff revenue from the use of the Group's platform and pipeline facilities is 
recognised when products are physically transferred into a vessel, pipe or other 
delivery mechanism. 
 
 
Segmental Reporting 
 
 
Segmental reporting follows the Group's internal reporting structure, and 
accordingly, its primary segment reporting is by business segment. A business 
segment is engaged in providing products within a particular economic 
environment that is subject to risks and returns that are different from those 
segments operating in other economic environments. In the opinion of the 
Directors, the operations of the Group comprise two classes of business, oil 
production and gas production. 
 
 
Foreign Currency Translation 
 
 
(a) Functional and Presentation Currency 
Items included in the financial statements of each of the Group's entities are 
measured using the currency of the primary economic environment in which the 
entity operates (the functional currency). The consolidated financial statements 
are presented in pounds sterling, the Company's functional and presentation 
currency. 
 
(b) Transactions and Balances 
Foreign currency transactions are translated into the functional currency using 
the exchange rates prevailing at the dates of the transactions. Foreign currency 
gains and losses resulting from the settlement of such transactions, and from 
the translation at year end exchange rates of monetary assets and liabilities 
denominated in foreign currencies, are recognised in the income statement. 
Foreign currency gains and losses resulting from the translation of monetary 
balances that relate to trading are included within the operating profit. 
Foreign currency gains and losses resulting from the translation of monetary 
balances that relate to the Group's financing are included within finance 
expense. 
 
 
Goodwill 
 
 
Goodwill represents the excess of the cost of an acquisition over the fair value 
of the Group's share of the net identifiable assets of the acquired subsidiary 
at the date of acquisition. Goodwill on acquisition of subsidiaries is included 
in intangible assets. Separately recognised goodwill is tested annually for 
impairment and carried at cost less accumulated impairment losses. Impairment 
losses on goodwill are not reversed. Gains and losses on the disposal of an 
entity include the carrying amount of goodwill relating to the entity sold. 
 
 
Goodwill is allocated to cash-generating units (CGUs) for the purpose of 
impairment testing. The allocation is made to those CGUs or groups of CGUs that 
are expected to benefit from the business combination in which the goodwill 
arose. 
 
 
Property, Plant and Equipment 
 
 
All property, plant and equipment is shown at cost less subsequent depreciation 
and impairment. 
 
 
The initial cost of an asset comprises its purchase price or construction cost, 
any costs directly attributable to bringing the asset into operation, the 
initial estimate of the present value of any decommissioning obligation, if any, 
and for qualifying assets, borrowing costs. The purchase price or construction 
cost is the aggregate amount paid and the fair value of any other consideration 
given to acquire the asset. 
 
 
Subsequent costs are included in the asset's carrying amount or recognised as a 
separate asset, as appropriate, only when it is probable that future economic 
benefits associated with the item will flow to the Group, and the cost of the 
item can be measured reliably. All other repairs and maintenance are charged to 
the income statement during the financial period in which they are incurred. 
 
 
Property, Plant and Equipment - Oil and Gas Exploration, Appraisal and 
Development Expenditure 
 
 
Oil and gas exploration, appraisal and development expenditure is accounted for 
using the successful efforts method of accounting. 
 
 
Expenditure incurred prior to obtaining the legal rights to explore an area is 
expensed immediately to the income statement. 
 
 
Expenditure directly associated with an exploration well is capitalised on a 
licence by licence basis. Costs are held, un-depleted, on the balance sheet 
under exploration assets, until the success or otherwise of the well has been 
established. Costs will continue to be held as an asset if the results indicate 
that hydrocarbon reserves exist and there is a reasonable prospect that these 
reserves are commercial. All such carried costs are subject to technical, 
commercial and management review at least once a year to confirm the intent to 
develop or otherwise extract value from the discovery. When this is no longer 
the case, the costs are written off. When proved reserves are determined and 

Venture Production (LSE:VPC)
Historical Stock Chart
From Jun 2024 to Jul 2024

Venture Production (LSE:VPC)
Historical Stock Chart
From Jul 2023 to Jul 2024