Accounting Policies (Policies)
|6 Months Ended|
Jun. 30, 2016
|Summary Of Significant Accounting Policies [Abstract]|
|Correction of Error||
Correction of error – Accounts with partners and Allowance for bad debts – Subsequent to the issuance of our 2015 financial statements, we identified an error in the presentation on the consolidated balance sheet of the accounts with partners and the associated allowance for bad debts. These accounts incorrectly included a fully reserved receivable of $7.6 million which should have been charged off against the reserve in 2012 when efforts to collect from a removed partner were no longer viable and had been abandoned. To correct this error, we removed the reference to the $7.6 million allowance from the caption. This correction had no impact on the consolidated balance sheet or the consolidated results from operations.
|Receivables Trade And Other Accounts Receivable Allowance For Doubtful Accounts Policy||
Bad debt – Quarterly, we evaluate our accounts receivable balances to confirm collectability. When collectability is in doubt, we record an allowance against the accounts receivable and a corresponding income charge for bad debts, which appears in the Bad debt expense (recovery) and other line of the condensed consolidated statements of operations. The majority of our accounts receivable balances are with our joint venture partners, purchasers of our production and the government of Gabon for reimbursable Value-Added Tax (“VAT”). Collection efforts, including remedies provided for in the contracts, are pursued to collect overdue amounts owed to us.
In the three and six months ended June 30, 2016, we increased the allowance related to VAT due from Gabon by $0.1 million and $0.6 million. There were no changes in the allowance for bad debts during the three and six months ended June 30, 2015. In June 2016, we entered into an agreement with the government of Gabon to receive payments of the outstanding VAT receivable balance as of December 31, 2015 in thirty-six monthly installments of $0.2 million net to VAALCO, which commenced in July 2016.
Disclosure of accounting policy for determining the allowance for doubtful accounts for trade and other accounts receivable balances, and when impairments, charge-offs or recoveries are recognized.
Reference 1: http://www.xbrl.org/2003/role/presentationRef