Mexus Gold US (MXSG)

[T-Hawk]

I don't interpret that section the same way you do. It doesn't mention anything about recording the sale of minerals.

However, on page 11, first paragraph on the top right it states;

Sale of product during the development stage
None of the companies reviewed disclosed their accounting treatment of revenues derived from the sale of product during the development stage, probably because such revenues are not material to the financial statements. The alternatives are to record sales as revenue, in which case the cost of sales would presumably need to be computed, or to credit revenues against the cost of the project to which they relate.

Both ways are acceptable practice. Once again, the facts show there is no current SEC regulation prohibitting Mexus from claiming gold sales as revenue.

Interestingly I did find this tid bit at the end of pasge 11;

On the other hand, under the exposure draft, if the operations are necessary to bring the asset to operating condition, then net sales proceeds received during activities necessary to bring the asset to the location and working condition necessary for it to be capable of operating properly, are deducted from the cost of the asset.

To be clear, this last section is not referencing SEC guidlines but the Interantion Accounting Standards exposure draft (Proposed changes to thier accounting standards) - Which Mexus is not required to follow (and doesn't). Notice it says "deducted from the cost of the asset", not exploration costs.