Due to an amendment to IAS 38 Intangible assets, the amortization method for the seismic multi-client libraries will have to change with effect from 1 January 2016.

After an extensive process involving industry participants, TGS and PGS have decided to adopt the following changes to the amortization policy:

During the work in progress (WIP) phase, amortization will continue to be based on total cost versus forecasted total revenues of the project.

After a project is completed, a straight-line amortization is applied. The straight-line amortization will be assigned over a remaining useful life, which for most projects is expected to be 4 years. The straight-line amortization will be distributed evenly through the financial year independently of sales during the quarters.

Tags: TGS-NOPEC Geophysical Company