In December 2004 the International Accounting Standards Board (IASB) issued IFRS 6 Exploration for and Evaluation of Mineral Resources Other IFRSs have made minor consequential amendments to IFRS 6, including Improvement to IFRSs (issued April 2009)

IN1

INTERNATIONAL FINANCIAL REPORTING STANDARD EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES

1 3 6 6 8 8 9 12 13 15 15 17 18 18 21 23 26 27

OBJECTIVE SCOPE RECOGNITION OF EXPLORATION AND EVALUATION ASSETS Temporary exemption from IAS 8 paragraphs 11 and 12 MEASUREMENT OF EXPLORATION AND EVALUATION ASSETS Measurement at recognition Elements of cost of exploration and evaluation assets Measurement after recognition Changes in accounting policies PRESENTATION Classification of exploration and evaluation assets Reclassification of exploration and evaluation assets IMPAIRMENT Recognition and measurement Specifying the level at which exploration and evaluation assets are assessed for impairment DISCLOSURE EFFECTIVE DATE TRANSITIONAL PROVISIONS APPENDICES A Defined terms B Amendments to other IFRSs

 

International Financial Reporting Standard 6 Exploration for and Evaluation of Mineral Resources (IFRS 6) is set out in paragraphs 1-27 and Appendices A and B. All the paragraphs have equal authority. Paragraphs in bold type state the main principles Terms defined in Appendix A are in italics the first time they appear in the Standard Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 6 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance

Introduction

Reasons for issuing the IFRS

IN2 The Board's predecessor organisation, the International Accounting Standards Committee, established a Steering Committee in 1998 to carry out initial work on accounting and financial reporting by entities engaged in extractive activities. In November 2000 the Steering Committee published an Issues Paper Extractive Industries

 IN3 In July 2001 the Board announced that it would restart the project only when agenda time permitted. Although the Board recognised the importance of accounting for extractive activities generally, it decided in September 2002 that it was not feasible to complete the detailed analysis required for this project, obtain appropriate input from constituents and undertake the Board's normal due process in time to implement changes before many entities adopted IFRSs in 2005

IN4 The Board's objectives for this phase of its extractive activities project are

to make limited improvements to accounting practices for exploration and evaluation expenditures, without requiring major changes that might be reversed when the Board undertakes a comprehensive review of accounting practices used by entities engaged in the exploration for and evaluation of mineral resources

to specify the circumstances in which entities that recognise exploration and evaluation assets should test such assets for impairment in accordance with IAS 36 Impairment of Assets to require entities engaged in the exploration for and evaluation of mineral resources to disclose information about exploration and evaluation assets, the level at which such assets are assessed for impairment and any impairment losses recognised

IN5  The IFRS

permits an entity to develop an accounting policy for exploration and evaluation assets without specifically considering the requirements of paragraphs 11 and 12 of IAS 8. Thus, an entity adopting IFRS 6 may continue to use the accounting policies applied immediately before adopting the IFRS. This includes continuing to use recognition and measurement practices that are part of those accounting policies requires entities recognising exploration and evaluation assets to perform an impairment test on those assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount varies the recognition of impairment from that in IAS 36 but measures the impairment in accordance with that Standard once the impairment is identified

permits an entity to develop an accounting policy for exploration and evaluation assets without specifically considering the requirements of paragraphs 11 and 12 of IAS 8. Thus, an entity adopting IFRS 6 may continue to use the accounting policies applied immediately before adopting the IFRS. This includes continuing to use recognition and measurement practices that are part of those accounting policies

requires entities recognising exploration and evaluation assets to perform an impairment test on those assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount varies the recognition of impairment from that in IAS 36 but measures the impairment in accordance with that Standard once the impairment is identified

 

International Financial Reporting Standard 6 Exploration for and Evaluation of Mineral Resources

Objective

limited improvements to existing accounting practices for exploration and evaluation expenditures entities that recognise exploration and evaluation assets to assess such assets for impairment in accordance with this IFRS and measure any impairment in accordance with IAS 36 Impairment of Assets

disclosures that identify and explain the amounts in the entity's financial statements arising from the exploration for and evaluation of mineral resources and help users of those financial statements understand the amount, timing and certainty of future cash flows from any exploration and evaluation assets recognised

Scope

 

When developing its accounting policies, an entity recognising exploration and evaluation assets shall apply paragraph 10 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

 Paragraphs 11 and 12 of IAS 8 specify sources of authoritative requirements and guidance that management is required to consider in developing an accounting policy for an item if no IFRS applies specifically to that item. Subject to

paragraphs 9 and 10 below, this IFRS exempts an entity from applying those paragraphs to its accounting policies for the recognition and measurement of exploration and evaluation assets

صفحه      1       2