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Accounting Students hellpppp me please!!!! watch

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    How would you handle this companies exploration Costs, lets call the company X

    I was given this as extra work on outside of class and i'm super stuck, no one else in my class has attempted this so i'm coming to you for help!! I have to advise the FD on how to respond to this situation..


    It’s a fuel company like Shell/Esso etc, been told to use $'000


    During the year ended 31 December 2016, X conducted exploratory drilling in two sites where research suggested oil may be present.

    The costs of the research and exploratory drilling of $762m, was of $400m for Site 1 and $362m for Site 2, were capitalised as exploration and evaluation assets on X’s SOFP

    During 2017, work continued at both sites. X concluded that oil was present at both sites. Site 1 HAD oil reserves of 1,501 million barrels. X plans to continue extraction of this oil in 2018. At Site 2, X was satisfied that oil was present. However, but X supposed that extraction of oil would not be commercially viable due to the geological nature of the site.

    X therefore abandoned drilling at the Site 2. X’s accountants were unsure how to update the accounts in response to this new information, therefore left the exploration and evaluation assets for these sites unchanged from 2016 at $762m.

    idk what IFRS standard to apply to this, and what to Dr or Cr on what statements
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    Bummp
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    Doonesbury You wouldn't happen to know any accountacy users on here that could help the lovely squirrel out, would you Mr Doonesbury Sir?
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    (Original post by Kraggor)
    Doonesbury You wouldn't happen to know any accountacy users on here that could help the lovely squirrel out, would you Mr Doonesbury Sir?
    Nope, sorry

    I could have a go at it myself but I'm not remotely up to date on FRS.

    Posted from TSR Mobile
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    (Original post by Doonesbury)
    Nope, sorry

    I could have a go at it myself but I'm not remotely up to date on FRS.

    Posted from TSR Mobile
    That's okay :console:

    Oml don't worry about trying to do it yourself :no: You've done more than enough :yep: Thanks for your assistance
 
 
 
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