Chapter 10: Taxation, depreciation, royalties and accounting standards
It’s a fact of life that taxes must be paid on profits derived from mining. As well as a company being able to claim operating costs as a tax deduction, capital costs may also be claimed, but on a depreciated basis (discussed later). As resources are non-renewable, state and federal governments often also charge a royalty payment as a fee for a company’s right to exploit the resource. The complexity of how all of these issues and other financial information should be presented to shareholders is governed by a maze of accounting standards.
It is not possible, nor is it the intention of this book, to fully describe all the issues and procedures for determining the ...