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Total Inventory- Inventories are stated at the lower cost to purchase and/or manufacture the inventory or the current estimated market value of the inventory. Patagonia Gold regularly reviews their inventory on hand, and records any provisions for excess or obsolete. Demand for products can fluctuate due to economic conditions, as well as the supply of the goods from specific mining sites. Some mining sites may have more of one good than the other, causing the supply to either increase or decrease based on findings. Inventory comprises gold held on carbo mineral concentrate and mineralized material stockpiles. They are physically measured or

Total Inventory- Inventories are stated at the lower cost to purchase and/or manufacture the inventory or the current estimated market value of the inventory. Patagonia Gold regularly reviews their inventory on hand, and records any provisions for excess or obsolete. Demand for products can fluctuate due to economic conditions, as well as the supply of the goods from specific mining sites. Some mining sites may have more of one good than the other, causing the supply to either increase or decrease based on findings. Inventory comprises gold held on carbo mineral concentrate and mineralized material stockpiles. They are physically measured or

FINANCIAL ACCOUNTING
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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Please use your own words to restate the ''total inventory'' and ''property/ plant/ equipment''. Should be the same length as the original one.

Total Inventory- Inventories are stated at the lower cost to purchase and/or manufacture the inventory or the current estimated market value of the inventory. Patagonia Gold regularly reviews their inventory on hand, and records any provisions for excess or obsolete. Demand for products can fluctuate due to economic conditions, as well as the supply of the goods from specific mining sites. Some mining sites may have more of one good than the other, causing the supply to either increase or decrease based on findings. Inventory comprises gold held on carbon, mineral concentrate and mineralized material stockpiles. They are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the entity expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. If the stockpile is not expected to be processed in 12 months after the reporting date, it is included in noncurrent assets and the net realizable value is calculated on a discounted cash flow basis. Cost of inventory is determined by using the weighted average method and comprises direct costs and a portion of fixed and variable overhead costs incurred in converting materials into concentrate and dore, based on the normal production capacity. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence
Transcribed Image Text:Total Inventory- Inventories are stated at the lower cost to purchase and/or manufacture the inventory or the current estimated market value of the inventory. Patagonia Gold regularly reviews their inventory on hand, and records any provisions for excess or obsolete. Demand for products can fluctuate due to economic conditions, as well as the supply of the goods from specific mining sites. Some mining sites may have more of one good than the other, causing the supply to either increase or decrease based on findings. Inventory comprises gold held on carbon, mineral concentrate and mineralized material stockpiles. They are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the entity expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. If the stockpile is not expected to be processed in 12 months after the reporting date, it is included in noncurrent assets and the net realizable value is calculated on a discounted cash flow basis. Cost of inventory is determined by using the weighted average method and comprises direct costs and a portion of fixed and variable overhead costs incurred in converting materials into concentrate and dore, based on the normal production capacity. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence
Property/Plant/Equipment- Property and equipment are stated at cost. Depreciation of furniture, office equipment, vehicles, and machinery for mining are based on their estimated useful lives, and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of an asset. Patagonia Gold Corp. Depreciation is calculated to amortize the cost of the property, plant and equipment over their estimated useful lives using the straight-line and unit of production methods. Office equipment, vehicles, machinery and equipment, Mina Martha processing plant, and buildings are stated at cost and depreciated straight line over an estimated useful life of 3 to 20 years. Depreciation of plants, other than Mina Martha, is based on a unit-of-production method over the estimated period of economically recoverable resources. Depreciation begins once the asset is in the state intended for use by management. The Company allocates the amount initially recognized in respect of an item of property and equipment to its significant parts and depreciates separately each such part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains or losses in the condensed interim consolidated statement of operations and comprehensive loss.
Transcribed Image Text:Property/Plant/Equipment- Property and equipment are stated at cost. Depreciation of furniture, office equipment, vehicles, and machinery for mining are based on their estimated useful lives, and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of an asset. Patagonia Gold Corp. Depreciation is calculated to amortize the cost of the property, plant and equipment over their estimated useful lives using the straight-line and unit of production methods. Office equipment, vehicles, machinery and equipment, Mina Martha processing plant, and buildings are stated at cost and depreciated straight line over an estimated useful life of 3 to 20 years. Depreciation of plants, other than Mina Martha, is based on a unit-of-production method over the estimated period of economically recoverable resources. Depreciation begins once the asset is in the state intended for use by management. The Company allocates the amount initially recognized in respect of an item of property and equipment to its significant parts and depreciates separately each such part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains or losses in the condensed interim consolidated statement of operations and comprehensive loss.
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