Question

what do you mean by shortworkings?

Answer 1

Shortworking is also called royalty suspense..

It is that amount by which minimum rent exceeds the actual royalty.

A royalty is a payment to an owner for the ongoing use of their asset or property, such as patents, copyrighted works, franchises, or natural resources.

Answer 2

Short-working is the discrepancy between Minimum Rent and Actual Royalties.

• Short-working occurs when true royalties are less than the Minimum Rent.
• Recoverable short-workings will be shown as a current asset on the Assets side of the Balance Sheet.
• Short-working recoupment clauses are common in royalty agreements, allowing the lessee to carry forward and apply any excess or surplus royalties over the Minimum Rent to future short-working.