Which statement does not describe the "successful efforts" method?
A)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the outcome is successful.
B)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is technically feasible.
C)A method of accounting that capitalizes costs of mineral exploration and evaluation until the production is successful.
D)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is commercially viable.

Question

Quizplus · Accepted Answer

The "successful efforts" method only capitalizes costs if the exploration and evaluation efforts are successful, meaning they have led to the discovery of commercially viable resources. It does not allow for the capitalization of costs until production is successful, as stated in option C.

Which Statement Does Not Describe the "Successful Efforts" Method