Equinor ASA – Annual report – 31 December 2019
Industry: oil and gas
Changes in significant accounting policies in the current period (extract)
Voluntary change in accounting policy (sales method)
With effect from 1 January 2019, Equinor changed the accounting policy for recognising revenue from the production of oil and gas properties in which Equinor shares an interest with other companies. Instead of recognising revenue based on Equinor’s ownership in producing fields, Equinor now recognises revenue on the basis of volumes lifted and sold to customers during the period (the sales method). This policy change was made due to the agenda decision in the IFRS Interpretations Committee (IFRIC) on the topic “Sale of output by a joint operator (IFRS 11)”, which was finalised in March 2019. The impact of this change on Equinor’s financial statements was not material.
Accounts examples 