Agreed great thread.Don't get me wrong I am happy JL gave a...

Agreed great thread.

Don't get me wrong I am happy JL gave a respone but I was a little unimpressed by the fact that he said part of the reason for not meeting production targets was the safety issue with the pillar etc. If this was only part of the reason, what are the other parts that make up the short fall? Full disclosure please. Any thoughts?

@williamsg I am not sure exactly which "future expenses" you are referring to, as I haven't had time to read the financial report. But perhaps part of this so called future expenditure relates to the current period and hence the reason it is included in this periods Profit and Loss Statement.

Depends on the nature of the expense and possibly how revenue is recorded, admittedly I haven't audited any resource companies so I can't give you a definitive answer, hence don't quote me. If the expense is just your normal regular everyday expense like electricity and it is paid in the current period but relates to a future period then the following double entry should be made if it is paid in advance Dr Prepayments Cr Cash. Then as the expense is actually being incurred in the relevant period the following entry is made Dr Expense Cr Prepayment. This is a simplistic example.

Hope that explanation helps.....

Cheers