IFRS 6 Exploration for and Evaluation of Mineral Resources
- Completed
- Published in the Official Journal
- Ioana Kiss
Description
The objective of IFRS 6 is to specify the financial reporting for the exploration for and evaluation of mineral resources. IFRS 6 is the first phase of a project on accounting for extractive activities and has the objective to provide interim guidance until the IASB has completed its comprehensive review. Until IFRS 6 was issued, there was no International Financial Reporting Standard covering the recognition, measurement and disclosure of exploration and evaluation assets.
The main features of IFRS 6 are:
• to permit an entity adopting IFRS 6 to continue to use the accounting policies applied immediately before adopting the IFRS without requiring major changes,
• to require an impairment test of exploration and evaluation assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount,
• to require disclosures that identify and explain the amounts arising from the exploration for and evaluation of mineral resources.
EFRAG has commented on the ED Exploration for and Evaluation of Mineral Resources on 23 April 2004.
EFRAG has submitted its endorsement advice letter to the European Commission on 10 February 2005.