EXPLORATION ASSETS AS AN OBJECT OF ACCOUNTING POLICY OF MINING ENTERPRISES: REGULATION AND APPLICATION PRACTICE

Abstract

The industry-specific features of the activities of mining enterprises that affect the organization of accounting are systematized: 1) the level of complexity of the geological structure of the mineral deposit determines the organizational structure of the enterprise; 2) the need to obtain special permits for the use of subsoil and high requirements for the safety of the technological process; 3) planned indicators of the volume of activities of the mining enterprise are established based on the balance reserves of minerals in the corresponding section of the deposit; 4) in conditions of martial law, access to individual deposits may be limited, logistical chains may be disrupted at any time, which requires the organization of delivery by various types of transport; 5) the implementation of basic business processes, including stripping operations, depends on climatic conditions, therefore, the volumes of extraction and sales should be planned taking into account seasonal weather fluctuations; 6) wear and tear of material and technical support leads to an increase in the duration of the operating cycle and a decrease in condition; 7) control of potential environmental consequences of planned economic activity, including conducting stripping works by state bodies and the public. It is substantiated that the complexity of the geological structure of the mineral deposit determines the even distribution of stripping rocks and minerals, the volume and condition of the extracted minerals according to their assortment, which will subsequently affect the size and share of stripping costs in the cost of mining results, the marketing price and assortment policy of the mining enterprise. It is established that the traditional object of accounting for mining enterprises is stripping costs, which can be performed both by the enterprise's own labor and material resources and by third-party specialized enterprises. It is proven. that the costs of stripping work are a component of the cost of production results, but the Regulation on Accounting Policy should regulate the mechanism for allocating costs incurred for stripping work to the cost of extracted minerals. Based on IFRS 20 “Striping Work Costs at the Quarry Extraction Stage”, the conditions for recognizing the stripping asset for domestic mining enterprises when extracting ore and non-ore minerals have been clarified. The objects of the stripping asset accounting policy have been developed: the procedure for recognizing the stripping asset as a non-current asset; the initial valuation of the stripping asset; the distribution of stripping costs at the extraction stage between the created reserves and the stripping asset; the subsequent valuation of the stripping asset; the procedure for calculating depreciation of the stripping asset.