I've been trying to find authoritative accounting literature to help me figure out what the accounting treatment would be if there is a natural resource asset that a company holds, and after the company has already fully depleted the resource on the books the company subsequently discovers that there is a significant amount of resources available that hadn't been anticipated. For example, say a company buys a mining site for X dollars thinking that only Y amount of coal was in the site. After the Y amount has been fully depleted (on the books and in reality) the company discovers that there are actually Z more amounts of coal available. Would the company continue to report the natural resource at a $0 book value, or would the company be able to increase the value of the asset upon discovery of the newly available resources?
Any answer is appreciated, but a link to authoritative literature would be a plus. Thanks!
2006-07-09
14:52:40
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3 answers
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asked by
C. John
2
in
Other - Business & Finance