In full cost and successful efforts accounting, costs are amortized over either proved reserves (PR) or proved developed reserves (PDR). Fill in the following table to indicate which reserves (PR or PDR) should be used to amortize the costs under each accounting method. If the costs should not be amortized, put an X to indicate no amortization. Cost a. Proved property acquisition b. Unproved property acquisition c. Successful exploratory drilling d. Successful development drilling e. Unsuccessful exploratory drilling f. Unsuccessful development drilling g. G&G costs h. Wells-in-progress-proved property SE FC

In full cost and successful efforts accounting, costs are amortized over either proved reserves (PR) or proved developed reserves (PDR). Fill in the following table to indicate which reserves (PR or PDR) should be used to amortize the costs under each accounting method. If the costs should not be amortized, put an X to indicate no amortization. Cost a. Proved property acquisition b. Unproved property acquisition c. Successful exploratory drilling d. Successful development drilling e. Unsuccessful exploratory drilling f. Unsuccessful development drilling g. G&G costs h. Wells-in-progress-proved property SE FC

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4.
In full cost and successful efforts accounting, costs are amortized over either
proved reserves (PR) or proved developed reserves (PDR). Fill in the following
table to indicate which reserves (PR or PDR) should be used to amortize the costs
under each accounting method. If the costs should not be amortized, put an X to
indicate no amortization.
Cost
a. Proved property acquisition
b. Unproved property acquisition
c. Successful exploratory drilling
d. Successful development drilling
e. Unsuccessful exploratory drilling
f. Unsuccessful development drilling
g. G&G costs
h. Wells-in-progress-proved property
SE
FC

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