Planet 22 In 2019 oil is discovered at Sunshine Site. Moonlight Site is abandoned. Planet Site has not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in the area of interest are continuing. In relation to the exploration and evaluation expenditures incurred at Sunshine Site and Planet Site, 70 per cent of the expenditures related to property, plant and equipment, and the balance relates to intangible assets. Required: Provide the necessary journal entries using the area-of-interest method to account for the above transactions.
Fiji Ltd commences operations on 1 January 2018. During 2017, Fiji Ltd explores three areas and incurs the following costs
Exploration and evaluation expenditure
($m)
Sunshine 35
Moonlight 18
Planet 22
In 2019 oil is discovered at Sunshine Site. Moonlight Site is abandoned. Planet Site has not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in the area of interest are continuing. In relation to the exploration and evaluation expenditures incurred at Sunshine Site and Planet Site, 70 per cent of the expenditures related to property, plant and equipment, and the balance relates to intangible assets.
Required:
Provide the necessary
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