Analysis of extractive industries Discussion Paper
Sep 30, 2009
Deloitte Australia's Energy and Resources Group has published Issue 6 of the Extracting Value Newsletter.
A special edition focusing exclusively on the draft Discussion Paper (DP) Extractive Activities, recently released 'for information purposes' by the IASB. Whilst ostensibly proposing approaches producing outcomes similar to common industry practice, there are a number of interesting issues and considerations arising from the draft Discussion Paper – such as potentially mandating capitalisation of exploration expenditure and much more information about the fair value of reserves and resources. This edition of Extracting Value explores some of these issues, beginning the commercial and pragmatic analysis of the proposals. An excerpt:
In summary terms, the Discussion Paper proposes to: