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Abstract
The article covers to problems of evaluation of subsoil objects and reflecting information on mineral resources in financial reporting. Evaluation of the objects in the mineral resources sector depends on type of the legislative framework for the different stages of geological exploration process in International Financial Reporting Standard 6 (Exploration for and Evaluation of Mineral Resources), Russian Financial Standard, US GAAP and other normative documents. Capitalization of assets at oil, gas and groundwater producing companies is overviewed. It is proposed to capitalize costs associated with the stages of geological exploration process. Capitalization of assets related to subsoil use will allow enterprises of the mineral and raw materials complex to increase their real capitalization, which will increase the resource potential and real investment attractiveness of the company. The results present possibility of capitalizing mineral reserves as mineral assets in mining oil and gas companies, groundwater extraction industry. Two examples of reflecting available mineral reserves in the reporting of oil, gas and groundwater extracting companies are depicted. The timeframe of the research has limits from 2007 till nowadays.
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Abstract
The article covers to problems of evaluation of subsoil objects and reflecting information on mineral resources in financial reporting. Evaluation of the objects in the mineral resources sector depends on type of the legislative framework for the different stages of geological exploration process in International Financial Reporting Standard 6 (Exploration for and Evaluation of Mineral Resources), Russian Financial Standard, US GAAP and other normative documents. Capitalization of assets at oil, gas and groundwater producing companies is overviewed. It is proposed to capitalize costs associated with the stages of geological exploration process. Capitalization of assets related to subsoil use will allow enterprises of the mineral and raw materials complex to increase their real capitalization, which will increase the resource potential and real investment attractiveness of the company. The results present possibility of capitalizing mineral reserves as mineral assets in mining oil and gas companies, groundwater extraction industry. Two examples of reflecting available mineral reserves in the reporting of oil, gas and groundwater extracting companies are depicted. The timeframe of the research has limits from 2007 till nowadays.