#Cashflows at begining of project plus#
On 31 January 2005, Deloitte's IFRS Global Office published a special edition of our IAS Plus Newsletter titled IFRS 6 Exploration for and Evaluation of Mineral Resources. Special IAS Plus Newsletter explaining IFRS 6 the amounts of assets, liabilities, income and expense and operating and investing cash flows arising from the exploration for and evaluation of mineral resources.its accounting policies for exploration and evaluation expenditures including the recognition of exploration and evaluation assets.IFRS 6 requires disclosure of information that identifies and explains the amounts recognised in its financial statements arising from the exploration for and evaluation of mineral resources, including: Īn entity treats exploration and evaluation assets as a separate class of assets and make the disclosures required by either IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets consistent with how the assets are classified. If an impairment test is required, any impairment loss is measured, presented and disclosed in accordance with IAS 36.This accounting policy may result in a different allocation than might otherwise arise on applying the requirements of IAS 36 Entities are permitted to determine an accounting policy for allocating exploration and evaluation assets to cash-generating units or groups of CGUs.The facts and circumstances outlined in IFRS 6 are non-exhaustive, and are applied instead of the 'indicators of impairment' in IAS 36 Entities recognising exploration and evaluation assets are required to perform an impairment test on those assets when specific facts and circumstances outlined in the standard indicate an impairment test is required.IFRS 6 effectively modifies the application of IAS 36 Impairment of Assets to exploration and evaluation assets recognised by an entity under its accounting policy. This includes continuing to use recognition and measurement practices that are part of those accounting policies.
Thus, an entity adopting IFRS 6 may continue to use the accounting policies applied immediately before adopting the IFRS. IFRS 6 permits an entity to develop an accounting policy for recognition of exploration and evaluation expenditures as assets without specifically considering the requirements of paragraphs 11 and 12 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Accounting policies for exploration and evaluation Įxploration and evaluation expenditures are expenditures incurred in connection with the exploration and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource is demonstrable.
IFRS 6 Exploration and Evaluation of Mineral Resources issuedĮffective for annual periods beginning on or after 1 January 2006Īmended by Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IFRS 6 Exploration for and Evaluation of Mineral Resources (transitional relief)Īmended Basis for Conclusions to IFRS 6 onlyĪmendments under consideration by the IASBĮxploration for and evaluation of mineral resources means the search for mineral resources, including minerals, oil, natural gas and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral resource. Short-term project split off from comprehensive projectĮxposure Draft ED 6 Exploration for and Evaluation of Mineral Resources published Project on extractive industries carried over from IASC
IASC issues paper Summary of Issues: Extractive Industries published and comments invited
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