Oil & Gas
E&E Asset Impairment — Trigger Event
Writing down an E&E asset when indicators of impairment exist (e.g., licence expiry, decision to abandon).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss — E&E Assets | Expense (+) | 3,000,000.00 | - |
| Exploration & Evaluation Assets (E&E) | Asset (-) | - | 3,000,000.00 |
💡 Accountant's Note
IFRS 6 requires E&E assets to be tested for impairment when facts and circumstances suggest the carrying amount may exceed the recoverable amount — e.g., licence expiry approaching, no plans to develop, or the area is being relinquished.
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