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A new NAS 33 “Expenses on Exploration of Subsoil Reserves” has been adopted

26.08.2008

NAS 33 determines methodological grounds for generation of accounting information on expenses on exploration and determination of volumes and quality of subsoil reserves and their disclosure in financial reporting.

NAS 33 determines new terms, such as subsoil reserves exploration assets, expenses on subsoil reserves exploration and subsoil reserves exploration.

Subsoil reserves exploration assets are expenses associated with exploration and determination of volumes and quality of subsoil reserves recognized as assets.

Expenses on subsoil reserves exploration are expenses associated with exploration and determination of volumes and quality of subsoil reserves over a period after which technical capacity and economic feasibility of their extraction has been determined.

Exploration of subsoil reserves exploration means search and determination of volumes and quality of subsoil reserves, including oil, natural gas and other non-renewable natural resources, which should be performed by an enterprise upon acquiring a right to explore subsoil reserves within a restricted ground (area) as well as determining technical capacity and economic feasibility of subsoil reserves extraction.

NAS 33 consists of the following sections:

  • structure of expenses on subsoil reserves exploration;
  • determining subsoil reserves exploration assets;
  • disclosing information about subsoil reserves exploration in notes to financial reporting.

NAS 33 becomes effective starting on January 01, 2009.

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