1. Overview of geological results and classification of results

(1) Overview of geological results

Geological results are geological exploration units’ legal exploration activities in our country. The general term for the exploration results obtained after applying for registration in accordance with regulations and available for further exploration and development and the corresponding exploration rights and priority mining rights. It is different from both physical assets and intangible assets. It is an intellectual and informational asset that is inseparable from resource-based assets such as natural mineral deposits (ore bodies) and exploration rights and mining rights.

(2) Classification of geological results

According to their different properties and uses, they can be divided into:

1. Mineral exploration report

Mineral land exploration report refers to the useful information obtained from the investigation and research of objective geological bodies in a specific area or mineralization zone or a known mineral land in accordance with geological exploration work procedures and using geological science theories and various technical methods and means. Phased survey reports or final survey reports expressed in text, drawings, tables, etc. According to different geological work stages (or work levels), they are divided into:

(1) Geological survey results, including solid mineral survey reports; petroleum and marine geological preliminary surveys, overview surveys, and survey reports; 1:20 Hydrogeological survey reports on a scale of 10,000 and less than 1:200,000 (excluding regional surveys); geophysical and geochemical survey and census reports.

(2) Detailed geological survey report, including solid mineral detailed survey report; hydrogeological detailed survey report; petroleum and marine geological detailed survey report.

(3) Geological exploration results, including solid mineral geological exploration reports; petroleum and marine geological preliminary exploration, detailed exploration, early development, oil and gas field development geological reports; hydrogeological exploration reports.

2. Valuable exploration data

Valuable exploration data refers to exploration data that meet the following conditions:

(1) Geology has been The registration of exploration results serves as the benchmark and is the earliest independent explanation of the geological conditions of a certain mineral area, which can be used as evidence of the right to discover the mineral area.

(2) Indispensable early results that make major breakthroughs in other geological exploration results.

(3) Valuable data results obtained by certain exploration methods.

(4) It can be used as the only basis for survey registration.

3. Physical results

Physical results refer to the physical results obtained by the geological exploration unit during the geological exploration process that can be separately assessed and recorded, specifically including:

(1) Newly discovered mineral sites (spots) and water sources;

(2) Industrial oil and gas wells (exploration and production wells);

(3) Exploration and production combined with hole expansion Hydrology becomes a well.

Geological results can be divided into:

(1) The geological results owned by the geological exploration unit refer to the geological prospecting unit’s use of self-raised funds (including investment from the competent department) funds), etc. to conduct geological exploration work and obtain the geological results of mineral rights in accordance with the law.

(2) National geological achievements refer to geological exploration units using national budget funds (including central and provincial budgets) to carry out geological exploration work, and their mineral rights belong to the country’s geological achievements.

In the current accounting system, geological results are treated as intangible assets for management and accounting. This is mainly due to the fact that geological results have certain characteristics of intangible assets: ① Geological exploration units are mainly responsible for the national budget The ownership of geological results obtained during inland geological survey work belongs to the state, and geological survey units do not have the problem of recording geological results as assets. The social geological survey work undertaken by geological survey units, in addition to geological projects in exchange for geological results, is also a labor contracting relationship and does not involve the issue of recording geological results. ② The geological results obtained by the geological prospecting unit’s self-financing work are premised on external transfer or investment. The geological prospecting unit’s application for approval to transfer the geological results to external parties or use them for investment is an additional investment by the state to the geological prospecting unit. It is also an act of asset transfer. Therefore, geological results must be accounted for as assets. ③ The purpose of acquisition of geological results for transfer or investment is different from that of intangible assets such as patented technologies purchased or developed by oneself. The former is for transfer, while the latter is for holding. ④ Geological results are actually the work results of the geological survey unit, similar to the finished products of the enterprise, and belong to the inventory category. Because of the above reasons, it is appropriate for the current system to regard geological results as a special product of geological exploration units. This does not deny the intangible asset attributes of geological results, nor does it constitute a contradiction with the financial system; at the same time, it is also convenient for accounting. The scope of intangible assets stipulated in accounting standards is consistent.

2. Valuation of geological results

(1) Valuation of geological results

The valuation of geological results refers to the determination of the recorded value of geological results. Not all geological achievements owned by geological exploration units are valued and recorded in accounts. Only those geological results used for self-development, transfer or investment in other units are valued and recorded in accounts. In other words, only the geological results obtained by self-funded exploration work by geological exploration units and the national geological results approved for external transfer or investment should be valued and recorded as assets.

Because the self-owned geological results of geological survey units are mainly used for self-development, external transfer and investment; the results obtained by geological survey units using state budget funds, when authorized to geological survey units for external transfer or investment, are both national and state-owned geological achievements. The asset investment of the exploration unit is also the transfer of ownership of the geological achievements by the state, so it should be valued and recorded as assets.

The geological results of geological exploration units should generally be valued at the actual cost at the time of acquisition. The actual cost of geological results refers to the total cost of exploration, registration application and acquisition of exploration rights and priority mining rights that actually occurred in the process of obtaining geological results. Depending on the source, the following treatment can be done:

(1) If the geological exploration unit uses self-raised funds to conduct self-exploration, it shall be recorded according to the total cost of the geological project and the expenses incurred in the registration application process.

(2) The geological results purchased by the geological exploration unit shall be recorded according to the actual price paid, that is, the purchase price and the taxes and fees incurred during the transaction.

(3) The national geological achievements submitted by the geological prospecting unit for investment and transfer by the state as assets for foreign investment or transfer shall be accounted for according to the assessed and confirmed value or the agreed price.

(2) Recording time of geological results

The geological results that geological exploration units should record as assets are also recorded at different times:

(1) Geological results The national geological achievements approved for transfer and external investment by the exploration unit shall be recorded in the accounts at the assessed and confirmed value or the negotiated price when the transfer, investment behavior is established and the property rights are transferred; they shall be registered and reflected in the form of an audit book at ordinary times.

(2) The purchased geological results, when the property rights are obtained, will be recorded at the actual price paid plus various taxes and fees incurred during the transaction.

(3) The geological results owned by the geological exploration unit shall be valued and recorded at their actual cost after the application for registration is approved by the competent authority.

3. Accounting treatment of geological results

(1) Account setting

The geological survey unit should set up the "geological results" subject for accounting. The debit side of this account registers the increase in geological achievements obtained through various channels, the credit side registers the decrease in the transfer and investment of geological achievements, etc., and the debit balance at the end of the period reflects the balance of geological achievements.

(2) Geological achievements achieved

(1) Geological achievements achieved with self-raised funds. For geological results obtained by geological exploration units through self-funded geological exploration, the various costs and expenses incurred should first be collected in the "Geological Exploration and Production" subject. After the geological project has been accepted and the report has been filed, the application shall be made according to the prescribed procedures. After registration, the "Geological Results" account will be debited and the "Geological Exploration and Production" account will be credited according to its actual cost.

(2) Geological results approved by the state for transfer. Since the actual cost of national geological achievements reported by geological survey units for external investment or transfer has been written off as national geological survey expenditures by the state budget appropriation, when obtaining state authorization, the geological survey units shall be responsible for the project. The value of the geological results shall be re-evaluated and confirmed, and the assessed and confirmed value shall be the recorded value of the geological results. When approved and confirmed, the "Geological Results" account will be debited and the "National Fund" account will be credited.

(3) Purchased geological results. When geological exploration units purchase geological results, they are recorded in the accounts based on the actual price paid and the taxes and fees incurred during the transaction. The accounting treatment is to debit the "Geological Results" account and credit the "Bank Deposits" and other accounts.

(3) Transfer of geological results

my country's "Trial Measures for the Management of the Use of Mineral Resources Exploration Results" clearly stipulates that all geological results obtained within the territory of the People's Republic of China and other sea areas under its jurisdiction shall be obtained in accordance with the law. The mineral resource exploration results are used for a fee; the paid transfer of geological exploration results must be assessed by a qualified appraisal agency; the transfer price is based on the value confirmed by the asset appraisal and is determined on the basis of voluntariness and negotiation. Since the transfer methods of geological results of geological exploration units are different, the determination and accounting treatment methods of their transfer income are also different.

(1) When a geological exploration unit transfers its own geological results in the form of auction, sale, etc., the revenue is recognized when the price is collected or the receipt of the price is obtained. According to the actual transfer price collected, the "bank deposit" or "accounts receivable" and other accounts are debited, and the "operating income - transfer income of geological achievements" account is credited; at the same time, according to the book value of the geological achievements, the actual geological achievements are carried forward For cost, debit the "Operating Cost - Geological Results Transfer Cost" account and credit the "Geological Results" account. Transaction expenses incurred and taxes paid are debited to "operating expenses", "operating taxes and surcharges" and other accounts, and credited to "bank deposits", "taxes payable" and other accounts.

(2) When the geological prospecting unit applies for approval and transfers national geological results to external parties for a fee, it should confirm when the geological results data are officially handed over to the transferee for acceptance and acceptance, and the price is collected or the receipt of the price is obtained. Realization of transfer income. Since the income realized from the transfer of national geological achievements data must first be deducted from the actual costs that have been written off by the national budget allocation (as transferred to national funds), the remaining part will be treated as operating income; if there is no remaining or the transfer price is lower than the actual When the cost is incurred, the full amount shall be transferred to the state fund. Therefore, the accounting treatment is different from the accounting treatment for transferring self-owned geological results.

When recording geological results and calculating the difference (net income), debit "Geological Results" and credit "National Fund" and "Operating Income - Geological Results Transfer Income"; when paying transaction fees, debit "Operating Expenses" and credit Accounts such as "Bank Deposits" are recorded; when the transfer price is received, the "Bank Deposits" account is debited and the "Geological Results" account is credited. If it is lower than the actual cost, the full transfer price will be transferred to the state fund.

(4) Long-term investment in geological achievements

1. Subject setting and accounting method

Geological exploration units use their own or national geological achievements as investment assets. Joint ventures with other units or shares at a discount, or investment in diversified business enterprises, should be accounted for in the "long-term investment - long-term equity investment" account. The accounting content should include the investment, income and recovery of geological results, etc. Depending on whether it has actual control over the invested unit, if it has actual control, it should be accounted for using the equity method; otherwise, it should be accounted for using the cost method.

2. Accounting for external investment in geological achievements under the cost method

(1) Accounting for investment in geological achievements

① Based on own geological achievements For investment, the value is determined based on the contract price or agreement, and the "long-term investment" account is debited and the "geological achievements" account is credited; when the contract price or agreement price is greater than the book value of the geological achievements, the "long-term investment - long-term investment" is debited based on the contract price. For the "Equity Investment" account, the "Geological Achievements" account will be credited according to the book value, and the "Geological Exploration Development Fund" account will be credited according to the difference between the contract price and the book value; when the contract or agreement price is less than the book value of the geological results, the "Geological Achievements" account will be credited according to the contract price. The "Long-term Investment - Long-term Equity Investment" account is debited, the "Geological Exploration Development Fund" account is debited according to the difference, and the "Geological Achievements" account is credited according to the book value of the geological results.

② To invest in national geological achievements, debit the "Geological Achievement" account and credit the "National Fund" account according to the appraisal confirmation price; at the same time, debit the "Long-term Investment - Long-term Equity Investment" account and credit Remember the "Geological Results" subject.

(2) Accounting of income from investment in geological results

The income obtained by geological exploration units from long-term investment in geological results is mainly the profit income distributed by joint ventures or distributed by invested units of dividends. These two parts of income, like other long-term investment income, are accounted for in the "investment income" account. When receiving profits from an associate or dividends from an invested unit, the "bank deposit" or "dividends receivable" account will be debited and the "investment income" account will be credited.

(3) Accounting for recovery of investment in geological achievements

When a geological exploration unit uses geological achievements to invest externally, and when the joint venture period expires or the equity is transferred to recover the investment, a debit shall be made based on the actual amount recovered. Accounts such as "bank deposits" will be credited to the "long-term investment" account based on the book amount of the investment; the difference between the recovered amount and the book amount, if it belongs to self-owned geological results, will be debited or credited to the "investment income" account. If it is a national geological achievement, the "National Fund" account will be debited or credited. The specific accounting treatment is as follows:

① When long-term investment is made with self-owned geological achievements, when the amount of investment recovered is greater than the book value of the investment in geological achievements, the relevant asset account shall be debited based on the actual amount recovered, and the relevant asset account shall be debited according to the actual amount recovered. The book value is credited to the "long-term investment - long-term equity investment" account, and the difference is credited to the "investment income" account; when the recovered investment amount is less than the book value of the geological achievement investment, the actual recovered amount is debited For the relevant asset account, the "investment income" will be debited based on the difference, and the "long-term investment" account will be credited based on the book value.

② When long-term investment is made with national geological achievements, when the amount of investment recovered is greater than the book value of the investment in geological achievements, the relevant asset account will be debited based on the actual recovered amount, and the "long-term investment" will be credited based on the book value. If the amount recovered is less than the book value of the geological achievement, the relevant asset account will be debited based on the actual recovered amount, and the difference will be debited to the "National Fund" account. Account, based on book value, is credited to the "Long-term Investment" account.

3. Accounting for external investment in geological achievements under the equity method

Geological exploration units use the equity method to account for investments in geological achievements. The accounting treatment method is different from the cost method. You can refer to the accounting treatment method for equity investment in long-term investment, and will not go into details here.

(5) Accounting treatment of amortization of geological achievements

1. Determination of amortization period of geological achievements

The use of geological achievements that have been registered by geological exploration units If it is developed by itself, it should be amortized equally over its income period. Since the benefit period of developmental geological results is closely related to the effective mining life of the mineral land, it can generally be determined based on the expected service life of the mine. If there is no service life, it will be amortized over the expected benefit period of not less than 10 years.

2. Accounting treatment for amortization of geological achievements

The geological achievements developed by the geological exploration unit shall be amortized in equal installments within its effective service life starting from the month when development and utilization begin. Enter management fees. The accounting treatment is: when the geological results are transferred to self-development and utilization, they should first be transferred to intangible assets according to their book value, and then the "administrative expenses" account should be debited and credited according to the amortization amount of the monthly geological results. Accumulated amortization" account.