Oil & Gas
Geological & Geophysical (G&G) Studies — Expensed
Expensing geological mapping and regional basin studies before an exploration license is secured.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Exploration Expense — G&G Studies | Expense (+) | 800,000.00 | - |
| Cash / Accounts Payable (Consultant) | Asset/Liability (-) | - | 800,000.00 |
💡 Accountant's Note
Pre-license G&G studies that do not relate to a specific exploration area with rights are expensed as incurred. They cannot be capitalized as E&E assets under IFRS 6 because no exploration right yet exists.
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