Oil & Gas
Exploration Overhead Allocation to E&E Asset
Allocating a portion of exploration department salaries and overhead to the E&E asset.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| E&E Assets (Overhead Capitalized) | Asset (+) | 350,000.00 | - |
| Exploration Staff Cost (Expensed) | Expense (-) | - | 350,000.00 |
💡 Accountant's Note
Only directly attributable exploration overhead can be capitalized to E&E assets. General administrative overhead cannot. The allocation basis (time records, project codes) must be defensible to auditors.
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