The standard provides guidance on accounting for exploration and evaluation costs incurred by entities in the mining and oil and gas exploration industries.
IFRS 6 permits an entity to continue using, under IFRSs, the accounting policies applied in its most recent annual financial statements for exploration and evaluation expenditures, including the recognition and measurement of exploration and evaluation assets.
The standard requires an impairment test for such assets, but it varies the recognition of impairment from that in IAS 36 Impairment of Assets. However, if impairment is identified, measurement of impairment must be in accordance with IAS 36.
IFRS 6 is effective for annual periods beginning on or after 1 January 2006. However, earlier application is encouraged, and if an entity adopts IFRS 6 before 1 January 2006, transitional relief is available for some comparative disclosures. Click for IASB Press Release (PDF 28k).