Tham khảo tài liệu 'accountants’ handbook special industries and special topics 10th edition_2', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | ACCOUNTING FOR MINING COSTS 27 -15 tion activities. As this publication goes to print a steering committee of the International Accounting Standards Steering Board has produced an issues paper as the first stage in the development of international accounting standards in the mining industry. Absent accounting standards specific to the mining industry mining companies rely on the guidance provided by authoritative pronouncements the specific GAAP guidance in SFAS No. 19 for natural resource companies engaged in exploration development and production of oil and gas and the accounting policies followed by mining companies as the basis for GAAP in the mining industry. ACCOUNTING FOR MINING COSTS a EXPLORATION AND DEVELOPMENT COSTS. Exploration and development costs are major expenditures of mining companies. The characterization of expenditures as exploration development or production usually determines whether such costs are capitalized or expensed. For accounting purposes it is useful to identify five basic phases of exploration and development prospecting property acquisition geophysical analysis development before production and development during production. Prospecting usually begins with obtaining or preparing and studying topographical and geological maps. Prospecting costs which are generally expensed as incurred include 1 options to lease or buy property 2 rights of access to lands for geophysical work and 3 salaries equipment and supplies for scouts geologists and geophysical crews. Property acquisition includes both the purchase of property and the purchase or lease of mineral rights. Costs incurred to purchase land including mineral rights and surface rights or to lease mineral rights are capitalized. Acquisition costs may include lease bonus and lease extension costs lease brokers commissions abstract and recording fees filing and patent fees and other related expenses. Geophysical analysis is conducted to identify mineralization. The related .
