32Extractive Industries

  1. Introduction
  2. Definitions of Terms
  3. Exploration and Evaluation of Mineral Resources
    1. Background
    2. IFRS 6 in Greater Detail
    3. Cash-Generating Units for Exploration and Evaluation Assets
  4. Assets Subject to IFRS 6
    1. Categorisation
    2. Availability of Cost or Revaluation Models
    3. Financial Statement Classification
    4. Disclosure Requirements Under IFRS 6
  5. Example of Financial Statement Disclosures
  6. IFRIC 20 Stripping Cost in the Production Phase of a Surface Mine
  7. Example of Financial Statement Disclosures
  8. Future Developments
    1. Extractive Industry Discussion Paper
  9. US GAAP Comparison


IFRS 6 deals with the accounting of exploration for, and the evaluation of, mineral resources. In April 2010, the IASB published the results of an international research project on a possible future IFRS for extractive activities in the form of a discussion paper—Extractive Activities. This chapter reports both on IFRS 6 and possible future developments. However, the IASB has paused the project and moved extractive activities to an inactive phase they are not currently working on.

IFRS 6 does not address other aspects of accounting by entities engaged in the exploration for and evaluation of mineral resources. An entity shall not apply IFRS 6 to expenditures incurred:

  1. Before the exploration for and evaluation of mineral resources, such as expenditures incurred before the entity has obtained the legal rights to explore a specific area;
  2. After the technical feasibility and commercial ...

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