Wiley IFRS 2014: Interpretation and Application of International Financial Reporting Standards

Chapter 32EXTRACTIVE INDUSTRIES

1. INTRODUCTION
2. DEFINITIONS OF TERMS
3. EXPLORATION AND EVALUATION OF MINERAL RESOURCES
   1. Background
   2. IFRS 6 in Greater Detail
      1. Cash-generating units for exploration and evaluation assets
      2. Assets subject to IFRS 6 categorization
      3. Availability of cost or revaluation models
      4. Financial statement classification
      5. Disclosure requirements under IFRS 6
4. EXAMPLE OF FINANCIAL STATEMENT DISCLOSURES
   1. IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine
5. FUTURE DEVELOPMENTS
   1. Extractive Industry Discussion Paper
6. US GAAP COMPARISON

INTRODUCTION

IFRS 6 which deals with the accounting for exploration for, and evaluation of, mineral resources, which deals with somewhat limited issues, and the IASB, assisted by a task force consisting of national standard setters, has continued to examine other related matters.

Ongoing research is considering all issues associated with accounting for “upstream” extractive activities. Specifically, this is intended to address the treatment of:

1. Reserves/resources—which will include determining whether:
   1. Reserves/resources can or should be recognized as assets on the statement of financial position;
   2. Predevelopment costs incurred following the discovery of reserves/resources should be capitalized or expensed if reserves/resources are not recognized;
   3. Predevelopment costs incurred prior to the discovery of reserves/resources should be capitalized or expensed; and
   4. Reserves/resources information should be disclosed—and if so, what ...