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Natural Resources
Intangible assets
Lack physical substance and the extent and timing of their future benefits typically are highly uncertain; goodwill, trademarks, franchises, patents, copyrights
Property Plant and Equipment(PPE)
land, buildings, equipment, machinery, furniture, autos, and trucks
Land improvements
Costs are capitalized and depreciated; parking losts, driveways, private roads, fences, lawn and garden sprinkler systems
When bought from another company, valuation is simply purchase price plus any other costs necessary to bring it to condition and location for use.
If developed, initial valuation:
1. acquisition costs
2. exploration costs
3. development costs
4. restoration costs
acquisition costs
The amounts paid to acquire the rights to explore for undiscovered natural resources or to extract proven natural resources
Exploration costs
Expenditures such as drilling a well, excavating a mine, or any other costs associated with searching for natural resources.
Development Costs
Incurred after the resource has been discovered but before production begins, which includes costs such as expenditures for tunnels, wells, and shafts.
Restoration costs
Costs to restore land or other property to its original condition after the natural resource has been extracted.
Asset Retirement obligations(AROs)
Measured at fair value and is recognized as a liability and corresponding increase in asset valuation.
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