A mining operation requires a business to incur substantial up-front costs for exploration and development activities, and probably additional costs as part of the mine's eventual closure and site rehabilitation. In Accounting for Mining, we describe how to account for the costs incurred at each phase of a mine's development, with particular attention to the more complex topics of asset retirement obligations and environmental obligations. Several additional topics related to asset impairment, business combinations, and financial disclosures are also covered.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the different types of mineral reserves.
Describe the depreciation methods most applicable to mining assets.
Specify how to account for an asset retirement obligation.
Describe which costs related to environmental contamination should be charged to expense as incurred, and which should be deferred.
Describe the various assets that may be recognized as part of the accounting for the acquisition of a mining business.
Major Topics
Stages of Certainty Regarding Minerals Found
Special Topics
Depreciation and Amortization
Asset Retirement Obligations
Business Combinations
Financial Disclosures
