IFRS 6 Exploration for and Evaluation of Mineral Resources Summary



IFRS 6 Exploration for and Evaluation of Mineral Resources • Issued in December 2004 • Recent amendment: by IAS 1 revised in September 2007 What is an exploration and evaluation expenditure? • an expenditure incurred for the exploration and evaluation of mineral resources • such expenditures recognised as an asset is called an exploration and evaluation asset Measurement at recognition • exploration and evaluation assets are measured at cost Measurement after recognition • choose one of the following models: (1) cost model (2) revaluation model Cost model: • carrying amount = cost - accumulated depreciation - accumulated impairment losses Revaluation model • carrying amount = revalued amount Revalued amount = fair value at the date of revaluation - subsequent accumulated –depreciation - subsequent accumulated impairment losses • Exploration and evaluation assets classified as tangible or intangible reflecting the nature of assets • Indication of impairment rules of IFRS 6 is different from those of IAS 36 • Impairment test rules of IAS 36 are applied • Recognition of impairment loss rules of IAS 36 are applied IFRS 6 Disclosures 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 (i) its accounting policies for exploration and evaluation expenditures including the recognition of exploration and evaluation assets. (ii) the amounts of assets, liabilities, income and expense and operating and investing cash flows arising from the exploration for and evaluation of mineral resources.

IFRS 6 Exploration for and Evaluation of Mineral Resources Summary

IFRS 6 Exploration for and Evaluation of Mineral Resources

IFRS 6 Disclosures