Podcast
Questions and Answers
What happens if a project is determined to be not technically feasible or not commercially viable?
What happens if a project is determined to be not technically feasible or not commercially viable?
- The costs are amortized over a specific period of time.
- The project continues in the hope of future profitability.
- The costs are capitalized and added to the current assets.
- Capitalization stops and costs are expensed immediately. (correct)
What must be proven for an asset to be available for sale or use?
What must be proven for an asset to be available for sale or use?
- Legal right to mine
- Probable future economic benefits (correct)
- Adequate resources
- Financial feasibility
Under the successful efforts method, what happens to costs if the site is unproductive?
Under the successful efforts method, what happens to costs if the site is unproductive?
- The costs are written off as expenses. (correct)
- The costs are held as potential income in future periods.
- The costs are expensed immediately.
- The costs are capitalized and included as part of the asset value.
When are costs incurred during the initial period of feasibility testing to determine the technical and financial feasibility of a proposed product expensed?
When are costs incurred during the initial period of feasibility testing to determine the technical and financial feasibility of a proposed product expensed?
How are unsuccessful efforts treated in terms of cost accounting?
How are unsuccessful efforts treated in terms of cost accounting?
In which phase are costs expensed if incurred prior to obtaining the legal right to explore a property?
In which phase are costs expensed if incurred prior to obtaining the legal right to explore a property?
Which costs are capitalized if a website is only used for advertising?
Which costs are capitalized if a website is only used for advertising?
What is the criteria for derecognition of long-lived assets?
What is the criteria for derecognition of long-lived assets?
When can costs for exploration and evaluation assets be capitalized?
When can costs for exploration and evaluation assets be capitalized?
In the pre-exploration and evaluation phase, what kind of costs are typically incurred?
In the pre-exploration and evaluation phase, what kind of costs are typically incurred?
How are costs treated in the post-exploration and evaluation phase after technical feasibility and commercial viability have been established?
How are costs treated in the post-exploration and evaluation phase after technical feasibility and commercial viability have been established?
Under which scenario should computer software costs be classified as an intangible asset?
Under which scenario should computer software costs be classified as an intangible asset?
What is the main objective for investors and lenders when assessing a company's cash flow potential?
What is the main objective for investors and lenders when assessing a company's cash flow potential?
What is the significance of high-quality earnings in relation to operating cash flows (OCF) and earnings per share (EPS)?
What is the significance of high-quality earnings in relation to operating cash flows (OCF) and earnings per share (EPS)?
What primary role do security analysts play in evaluating public companies?
What primary role do security analysts play in evaluating public companies?
Why do employers tie bonus plans to stock option plans on net income?
Why do employers tie bonus plans to stock option plans on net income?
What does the BoD aim to achieve by making decisions that maximize shareholder value?
What does the BoD aim to achieve by making decisions that maximize shareholder value?
How do income tax authorities use information reported by a company?
How do income tax authorities use information reported by a company?
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