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In the Exhibits, you will find three main financia

In the Exhibits, you will find three main financial statements for two fictitious oil companies. Both firms are involved in exploration, extraction, operation, transportation and refining. Distribution of their products differs from country to country, relying on a varying mix of directly controlled channels and distributors. South Petrol is a relative newcomer in the field and was started in the late twentieth century to explore, extract, refine and distribute oil from onshore fields in the South Mediterranean basin. Initially operating under heavy government supervision, protectionist rules, it must now compete on the open market. It started operations in mainly onshore and offshore fields at modest depths. It must now explore, develop and operate fields that are both further away from their home base (drilling permits have recently been obtained in both Brazil and Angola), at further depths in the ground and, more often than not, offshore (and increasingly in deep-sea fields). Its sales are both local and international and the customer base is, as of 2013 and for the foreseeable future, very diversified. North Petrol is a long established oil producer. It started operations in the early 1920s. Its facilities were largely reduced to shambles during World War II. The 1950s saw its rebirth in all fields, domestic and international, exploration and production and refining. Since the early 60s, North Petrol has developed an acknowledged expertise in deep-sea offshore dril

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