Oil & Gas
Exploratory Well — Suspended Pending Determination
Keeping an exploratory well's costs capitalized while the company assesses whether reserves are commercial.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| E&E Assets — Suspended Well (Capitalized) | Asset (+) | - | - |
| Suspended Well Disclosure (Memo) | Asset (Memo) | 18,000,000.00 | - |
💡 Accountant's Note
Under IFRS 6, exploratory well costs can remain capitalized beyond one year if (a) reserves have been found and (b) management is actively assessing commerciality. A suspended well over 12 months triggers enhanced disclosure requirements.
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