O'Reilly logo

Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition by Liesel Knorr, Graham Holt, Abbas A. Mirza

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 37
EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES (IFRS 6)

INTRODUCTION

IFRS 6 addresses the financial reporting for the exploration for and evaluation of mineral resources, including minerals, oil, natural gas, and similar nonregenerative resources. The Standard is intended to provide some limited, initial guidance about the accounting for such activities until the International Accounting Standards Board (IASB) has made a more comprehensive review of the accounting for extractive industries. In particular, the Standard modifies the requirements of other Standards so as to minimize disruption to entities in the extractive industries applying International Financial Reporting Standards (IFRS) for the first time.
More specifically, IFRS 6
• Identifies expenditures to be included in and excluded from exploration and evaluation assets
• Provides an exemption for exploration and evaluation assets from part of the hierarchy in IAS 8, Accounting Policies, Changes in Accounting Estimates, and Errors, of criteria that an entity should use to develop an accounting policy if no IFRS applies specifically to an item
• Requires an entity that recognizes exploration and evaluation assets to assess such assets for impairment in accordance with IFRS 6 and to measure such impairment in accordance with IAS 36, Impairment of Assets
• Requires disclosures that identify and explain financial statement amounts that arise from evaluation for and exploration of mineral resources, including ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required