accounting for mining exploration costs

1 Accounting for Mining Learning Objectives • Recognize the different types of mineral reserves. • Describe the depreciation methods most applicable to mining assets. • Specify how to account for an asset retirement obligation. • Describe which costs related to

I declare that ACCOUNTING AND TAXATION PRACTICES OF SELECTED MINING EXPLORATION COMPANIES IN SOUTH AFRICA is my own work and that all the sources that I have used or quoted have been indicated and acknowledged by means of complete references. mineral rights, mineral law, exploration cost, prospecting cost, pre-production cost, mining

International Financial Reporting Standards (IFRS) provide the basis for financial reporting to the capital markets in an increasing number of countries around the

the carrying forward of exploration and evaluation costs, so as to achieve as far as possible a proper matching of revenue and related expenses. In most cases, the area of interest will comprise a single mine or deposit or a separate oil or gas field. For any one

IAS 36 Impairment of Assets applies to the accounting for the impair b. substantive expenditure on further exploration for and evaluation of mineral 

IFRS and the mining industry Top ten accounting issues for Canadian issuers August 2008. top ten accounting issues 1. Impairment 6 Exploration for and Evaluation of Mineral It is presumed that historical cost determined under GAAP for mining entities is consistent with IAS 16 and can be carried forward.

its accounting policies for ex­plo­ration and eval­u­a­tion ex­pen­di­tures including the recog­ni­tion of ex­plo­ration and eval­u­a­tion assets the amounts of assets, li­a­bil­i­ties, income and expense and operating and investing cash flows arising from the ex­plo­ration for and eval­u­a­tion of mineral resources.

Accounting Treatment. Once exploration and evaluation costs have been recorded in the Profit and Loss statement, they cannot subsequently.

The accounting treatment of exploration and evaluation expenditure can have a fundamental impact on the financial statements of a mining entity, particularly 

definition. Open Split View. Exploration Expenses means all costs, expenses, obligations, liabilities and charges of whatsoever nature or kind incurred or chargeable, directly or indirectly, in connection with the exploration and development of the Property including, without limiting the generality of the foregoing, all costs reasonably

I have worked directly as a financial accountant for various mining and exploration companies for over 10 years, if you are interested in which companies I have worked for check out my profile. These have covered various stages of a mines life from exploration, feasibility, mine development, production and care & maintenance. Most junior explorers when looking for an