Ex 17.3 Joining Ltd has acquired a license to explore an area of interest and wants to capitalise its Exploration and Evaluation (E&E)expenditures on an area of interest basis.The following costs have been incurred . Required: Which costs can be capitalised as E & E assets under AASB 6? (a) the acquisition of speculative seismic data in relation to the area of interest to help determine whether to apply for an exploration licence (b)labour costs of engineers analysing the seismic data (c)the exploration licence fee (d)legal costs of obtaining the exploration licence (e)labour costs for engineers to carry out topographical,geological and geophysical studies on the area after exploration licence obtained (f)payroll costs related to the engineering costs (g)contractors fees for exploratory drilling (h)hire fees for drilling equipment
Ex 17.3 Joining Ltd has acquired a license to explore an area of interest and wants to capitalise its Exploration and Evaluation (E&E)expenditures on an area of interest basis.The following costs have been incurred .
Required:
Which costs can be capitalised as E & E assets under AASB 6?
(a) the acquisition of speculative seismic data in relation to the area of interest to help determine whether to apply for an exploration licence
(b)labour costs of engineers analysing the seismic data
(c)the exploration licence fee
(d)legal costs of obtaining the exploration licence
(e)labour costs for engineers to carry out topographical,geological and geophysical studies on the area after exploration licence obtained
(f)payroll costs related to the engineering costs
(g)contractors fees for exploratory drilling
(h)hire fees for drilling equipment
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