Accounting & Bookkeeping · KBLI 05100

Precision Mining Accounting

PSAK 64-compliant records, accurate depletion, and audit-ready mining financial reporting

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What usually goes wrong

  • Complex Depletion and Depreciation

    Coal reserve depletion calculations using the units-of-production method require accurate and consistent reserve estimates.

  • Asset Retirement Obligation (ARO)

    Recognition and measurement of mine decommissioning and restoration obligations that must be estimated from the start of operations.

  • Stripping Costs and Capitalization

    Overburden removal costs must be properly allocated between production expense and capitalization in accordance with IFRIC 20.

What we do

  1. 01

    Reserve-Based Depletion Accounting

    Developing depletion models based on proven reserves with periodic updates according to geological technical reports.

    • Accurate cost per ton
    • Fair asset book value
    • Optimal tax planning
  2. 02

    ARO Estimation and Amortization

    Calculating present value of mine restoration obligations and amortizing over mine life with appropriate discount assumptions.

    • Complete liability recording
    • Consistent amortization expense
    • External audit ready
  3. 03

    Open-Pit Cost Allocation

    Separating stripping costs between production expense and assets according to applicable IFRIC 20/PSAK.

    • Fair income statement
    • Accurate balance sheet
    • Per-pit profitability analysis

Related regulations

  • PSAK 64

    Mining Activities

    Accounting standard for exploration, evaluation, development, and production in mining including depletion and ARO

  • PSAK 57

    Provisions, Contingent Liabilities and Contingent Assets

    Recognition of mine decommissioning and restoration obligations (Asset Retirement Obligation)

  • PSAK 16

    Property, Plant and Equipment

    Capitalization of development costs and depreciation of mining assets over useful life

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

How is coal mining depletion calculated?

Depletion is calculated using the units-of-production method: (Asset book value - residual value) × (current year tonnage produced ÷ estimated total proven reserves). Reserve estimates must be periodically updated by geologists to maintain accuracy.

What is ARO and when should it be recognized?

Asset Retirement Obligation (ARO) is the obligation for post-mining decommissioning and land restoration. ARO is recognized when the asset is installed or the environment is disturbed, measured at the present value of estimated future restoration costs, with the debit side capitalized as part of the asset acquisition cost.

Can exploration costs be capitalized?

Exploration and evaluation costs can be capitalized as exploration and evaluation assets in accordance with PSAK 64 if they meet the criteria: the right to explore has been obtained, there are technically and commercially proven reserves, and the expenditure can be reliably measured.

How do accounting services improve operating cost efficiency?

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Can financial reports be accessed in real time?

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

How do you ensure reports are ready for external audits or banks?

Reports are prepared with clear documentation and traceable transaction data.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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