Costs incurred after discovery of a natural resource but before production begins are reported as expenses of the period in which the expenditures are made.

Question

Quizplus · Accepted Answer

Costs incurred after the discovery of a natural resource but before production begins are capitalized as part of the cost of the natural resource. They are not expensed in the period in which the expenditures are made.

Costs Incurred After Discovery of a Natural Resource but Before