The Expenses Related to Exploration Works – Capital Expenditures or Operating Costs?

  • Stanisław PAWŁOWSKI AGH Akademia Górniczo-Hutnicza, Wydział Górnictwa i Geoinżynierii
  • Arkadiusz KUSTRA AGH Akademia Górniczo-Hutnicza, Wydział Górnictwa i Geoinżynierii
  • Diana KOZIEŁ AGH Akademia Górniczo-Hutnicza, Wydział Górnictwa i Geoinżynierii
DOI: https://doi.org/10.29227/IM-2019-01-56
Keywords: geological-mining project, exploration works, capital expenditures,, operational costs

Abstract

The article presents the ways of accounting for expenditures related to exploration work. The methods of their valuation are presented
and the accounting regulations based on IFRS 6, which relate to this type of expenditure, are indicated. Their financial treatment
affects both assets and liabilities as well as revenues and costs of mining enterprises. The research carried out on exploration
companies in South Africa, which is one of the largest markets of exploration companies in the world, was cited for support of the
presented theses.

Published
2021-04-27
How to Cite
PAWŁOWSKI, S., KUSTRA, A., & KOZIEŁ, D. (2021). The Expenses Related to Exploration Works – Capital Expenditures or Operating Costs?. Test, 1(1). https://doi.org/10.29227/IM-2019-01-56
Issue
Vol 1 No 1 (2019): Inżynieria Mineralna
Section
ARTICLES

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