Oil & Gas
Exploration License Acquisition Cost Capitalized
Capitalizing the signature bonus and legal costs paid to acquire an exploration permit/block.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Exploration & Evaluation Assets (License Cost) | Asset (+) | 5,000,000.00 | - |
| Cash / Bank | Asset (-) | - | 5,000,000.00 |
💡 Accountant's Note
The cost of acquiring the legal right to explore is directly attributable to finding oil and gas resources. Under IFRS 6, it is capitalized as an E&E asset from the date the license is granted.
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