Accrual Basis, Cash Flow Basis and Reports. All books and Accounts shall be prepared on an accrual basis in accordance with generally accepted accounting principles used in the international petroleum industry.
Accrual Basis, Cash Flow Basis and Reports. All books and accounts shall be prepared on an accrual basis. Revenues shall be attributed to the accounting period in which they are earned, and Petroleum Costs shall be attributed to the accounting period in which they are incurred, without the need to distinguish whether cash is recovered or disbursed in connection with a particular transaction. Petroleum Costs shall be deemed to have been incurred, in the case of physical items, in the accounting period when title thereto passes to the CONTRACTOR, and in the case of services, in the accounting period when such services are performed.
