Oil & Gas
Exploration License — Annual Rental Payment
Paying the annual license rental to the host government to maintain the exploration permit in good standing.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| E&E Assets (License Rentals Capitalized) | Asset (+) | 200,000.00 | - |
| Cash / Bank | Asset (-) | - | 200,000.00 |
💡 Accountant's Note
Annual license rentals are paid to maintain the exploration right. They are capitalized to the E&E asset as a cost of holding the license. The full E&E balance is tested for impairment at the end of each period.
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