Abstract. The issues of capitalization of expenses in the mining industries are considered as an important way of strengthening the economy, improving the material support of the mining and processing industries as well as filling the budget of Ukraine. The basic concepts of capitalization and conversion of the enterprise expenses into enterprise assets are clarified, as well as recapitalization (the next stage of capital transformation, when past expenses change their form and place in the structure of assets, but do not affect the final financial results) and decapitalization (part or full write-off of the past capitalized expenses on the financial results of the enterprise). The role of accounting as an important tool in the implementation of capitalization processes is defined.
Peculiarities of documentation and capitalization of expenses in mining industries and reflection of such operations in the accounting system at different stages of nature management are mentioned. Methods of capitalization of expenses at separate stages of activity of the corporate associations which are carrying out extraction and processing of minerals are offered. At the preparatory stage of the mining process, it is proposed to capitalize the expenses into intangible assets in the form of acquisition of rights to use natural resources with their valuation by market methods. The expenses of preparation of deposits and quarries are proposed to be recognized as expenses of future periods and written off to current operating expenses in installments over a long period. Using operating costs, it is recommended to create a provision to cover costs at the stage of completion of the investment project for the extraction and processing of minerals. Reserved funds are needed to cover significant expenses in the closure of mining sites, reclamation of disturbed lands, their restoration to the natural state and the performance of other environmental work.
Keywords: accounting, documentation, capitalization, decapitalization, expenses, mining industries, corporate associations.
JEL Classification
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