Australian Alert on extractive industries
Dec 23, 2004
The Australian Accounting Standards Board (AASB) has released AASB 6 Exploration for and Evaluation of Mineral Resources and associated amendments to other accounting standards.
This follows the release by the IASB of IFRS 6. Deloitte (Australia) has published a new (PDF 51k) that provides an overview of AASB 6. AASB 6 is not expected to cause significant changes to the accounting for capitalised exploration and evaluation expenditure in Australia. The AASB has added Australian-specific paragraphs into the standard to grandfather current accounting for exploration and evaluation expenditure, and the proposed impairment test included in the original exposure draft has been amended such that an area of interest approach to impairment will continue. However changes may arise with respect to how to account for other extractive industry related activities, such as development, construction, production and restoration. To view earlier Australian Accounting Alerts Click Here.