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Coal listed companies mining rights accounting My Opinion

Author: ZengZhaoLin From: www.yourpaper.net Posted: 2010-04-05 01:34:53 Read:
[Abstract] mining rights is the basis of the survival and development of coal listed companies larger accounting coal listed companies' financial reports, financial report users are increasingly concerned about the accounting information of coal listed companies mining rights disclosed. Currently, different accounting methods of coal listed companies mining rights, contrary to the requirements of the basic norms of corporate accounting, accounting information quality comparability and understandability principle. How to regulate the accounting of the mineral rights, will be one of the urgent need to solve the problems in the construction of China's accounting standards.
Listed companies [J]; mining rights; accounting

A, the relevant provisions of the mining right accounting

Regulate mining rights of accounting, the Ministry of Finance issued a "notice" provisions of the accounting treatment of the prospecting and mining rights on the issuance of corporate and geological exploration units, enterprises will pay exploration right usage fees, and the price is included in the cost of exploration and development companies in the Expenses incurred in the exploration and production process are also included in the cost of exploration and development. Exploration and the end of the formation of the geological results, be transferred to the geological results; geological results can not be formed, one-time profit or loss. The use of the mining rights of enterprises to pay the fee directly through profit or loss. Enterprises to pay the price of mining rights as intangible assets and amortized evenly over the benefit period of the mining rights through profit or loss.
For the implementation of the State Council "decided to" strengthen geological work emphasized allows mining companies to the mineral resources exploration expenditures in accordance with the relevant provisions of factual expensed policy, before the formal implementation of the Enterprise Accounting Standards ", the Ministry of Land and Resources business Ministry of Finance in September 2006 issued a "notice" (Guo Tu Zi Fa [2006] No. 211), requires businesses and geological exploration units engaged in the exploration of mineral resources and mining-related expenditures accounting treatment continues to reiterate the relevant policies of the mining companies mineral resources exploration expenditures in accordance with the accounting Zi [1999] No. 40 execution.

Coal listed companies mining rights accounting and disclosure of the status quo

(A) Exploration of accounting and disclosure
Coal listed companies, four companies are disclosed in the 2008 annual report the relevant information of the prospecting and exploration rights value ranging between 5000 million to $ 13,080 million.
Which three companies prospecting rights included in intangible assets, a company prospecting rights as other non-current assets accounting. Exploration right into the intangible assets of the three companies, a company in 2007 and 2008, amortization of exploration right; another company in 2008, suspended the amortization of exploration rights, the reason is not known; the rest a company obtain exploration rights in November 2008, when not amortized.
(B) the mining rights of the accounting and disclosure
Coal listed companies, the mining rights are accounted for as intangible assets with finite useful life. However, there is a big difference in the handling of the amortization of mining rights, the amortization period of deferred payment price of mining rights beyond the normal credit conditions, provision for impairment and changing the amortization method.
Four mining rights are amortized over the production method; three subsidiary mining rights are amortized over the production method, the parent company itself amortized using the straight-line method; the rest of the company's mining rights are amortized on a straight-line basis over. Mining rights are amortized on a straight-line basis over the company, and some estimated useful lives, the shortest amortized evenly over the benefit period of the contract and the law's effective life of three; Some companies mining permits most valid for 30 years, long amortization; the some mine expected useful lives.
There are two extension of time to pay the price of mining rights for 10 years and 30 years. A company mining rights are accounted for in the year in accordance with the provisions of the guidelines of intangible assets accounted for in the present value of the purchase price. Another company in the implementation of Accounting Standards for the first time, do not follow regulations to the difference between the outstanding payments to their present value to reduce the book value of the mining rights, and at the same time recognized as unrecognized financing charges.
Coal product prices experienced in 2008 mining rights, only one company provided for impairment loss. The two companies will change the mining rights are amortized by the straight-line basis over the workload of the law, but only one company to disclose in its annual report as a change in accounting estimate. Third, the analysis of the mineral rights for coal listed companies accounting and disclosure of the status quo and thinking

(A) Analysis
Listed companies on the one hand, the implementation of the "Enterprise Accounting Standards, is no longer the original guidelines," enterprise accounting system, the accounting system of the industry, the professional accounting methods and questions, resulting in Kuai Zi [1999] No. 40 failure; On the other hand to solve the historical problems of the coal resources, the State Council promulgated the "agreed to deepen The coal resources compensation for the use of the reform pilot implementation program approval (of the letter [2006] No. 102), pointed out the direction of the coal resources tax reform. The relevant departments to delay the introduction of the mining rights, mineral resources compensation, resource tax, supporting the implementation of the program, to a certain extent affect the value of coal resources in the system of accounting standards reflect.
, Makes coal mining rights of the accounting drifted away from the current system of accounting standards, listed companies of mining rights in the confirmation, amortization and other information disclosure, there is a big difference, and violation of the basic norms of corporate accounting, accounting information quality requirements comparable and intelligible principle, is not conducive to the users of financial statements to make more scientific and rational decision-making.
(B) Some Thoughts
1 on the exploration right thinking
The company has exploration rights in four, three prospecting rights as intangible assets, including two companies of the prospecting and the amortization. If the exploration right as a finite useful life intangible assets to be managed, necessarily involves its expected useful life, the problems of the system, a reasonable method of amortization.
Exploration rights in a legally obtained the exploration license provisions within the rights of exploration of mineral resources. Be able to make the exploration of mineral resources prospecting and mining rights made a smooth transition into, and whether the economic benefits will flow to the enterprise, has a lot of uncertainty related to the exploration rights. Therefore, according to the useful life of the prospecting rights system, a reasonable method of amortization is inappropriate.
2 of mining rights
(1) In accordance with accounting practices, mining rights and land use rights are intangible assets subject. However, the mining rights and land use rights are essentially different. Over time, the actual value of the land use rights will not tend to zero, and even the value-added; while the actual value of the mining rights will only increase. Does not have a physical form intangible assets in accordance with the intangible asset criteria described in these guidelines, is one of the characteristics of intangible assets is different from other assets. Mining rights to obtain mining rights to the mineral resources entities loss to the expense, do everything consumption of mineral resources to make it into a product. Mining rights do not comply with the above characteristics of intangible assets attributable to intangible assets is a bit far-fetched.
(2) amortization of mining rights norms. In accordance with the regulations, specific yield limited franchise, should be amortized using the unit-of-production method. Only can not be reliably determined intangible assets expected to be realized before amortization using the straight-line method. The capacity of the coal enterprises approved by the department in charge of the industry production capacity constraints, the mining rights to be amortized using the unit-of-production method, to better reflect the expected economic benefits of mining rights implementation.
In summary, with the coal resources paid use of the the Reform implementation of the program in full swing, the regulatory authorities will constitute the cost of mining rights of coal products, mineral resources compensation, resource tax, regulate as a breakthrough in the reform of resource taxes. Will be prospecting rights expenditure as the cost of exploration and development of imputation and changed to comply with the conditions of the mining rights are included in the amortization of mineral resource assets in accordance with the regulations, may become one of the ideas to change accounting methods of mining rights.

The [mainly References]
[1] prepared by the Ministry of Finance Accounting Division group. Explain the Accounting Standards for Business Enterprises [2008] [M] People's Publishing House.
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