Oil & Gas
Seismic Survey Costs — E&E Asset
Capitalizing the cost of a 3D seismic survey conducted during the exploration phase.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Exploration & Evaluation Assets (E&E) | Asset (+) | 5,000,000.00 | - |
| Cash / Accounts Payable (Survey Contractor) | Asset/Liability (-) | - | 5,000,000.00 |
💡 Accountant's Note
Under IFRS 6, exploration and evaluation expenditures may be capitalized as E&E assets. Seismic surveys generate data about subsurface geology and are a direct exploration cost. The policy choice to capitalize or expense must be consistent and disclosed.
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