ACCT3563 Lecture Notes - Lecture 10: Book Value, 6 Years, Sekolah Berasrama Penuh
Document Summary
Aasb 6 exploration for and evaluation of mineral resources. Aasb 6 applies to exploration and evaluation only. Aasb 6 allows area of interest method to be used to account for exploration and evaluation costs in. Aasb 6 permits immediate write off but not as the only option. Aasb 6 permits capitalisation of e&e but not as the only option. During 2008 financial year, lee ltd commenced the search for oil and gas. It carried out exploratory drilling and evaluation at two individual geological locations known as hawk and tiger . Expenditure was incurred on the wages of staff and the services provided by contractors. The accounting policy of lee ltd is to capitalise exploration and evaluation expenditure when allowed by accounting standards. During the 2009 financial year, tiger moved from the exploration and evaluation stage to the development stage. Operations at hawk are continuing, and no decision has been made about the commercial viability of the site.
