Extractive Industries (Possible replacement of IFRS 6, Exploration for and Evaluation of Mineral Resources) [Completed]

Next steps:

No further activities expected

Last updated:

December 2023

Overview

In December 2004, the International Accounting Standards Board (IASB) issued IFRS 6 Exploration for and Evaluation of Mineral Resources as a result of a project taken over from the IASC. The standard was meant to be an interim step in the accounting for extractive activities.

In April 2010, the IASB published a Discussion Paper prepared by a project team of national standard-setters from Australia, Canada, Norway and South Africa and subsequently analyzed the feedback. In December 2012, the IASB deactivated the project, but in 2019 reactivated the project to see whether changes to IFRSs and other documents, and other developments since the discussion paper was published had affected the issues and conclusions in the discussion paper.

The IASB concluded the project at its September 2023 meeting. Based on evidence collected between 2018 and 2023, the IASB decided not to develop new or amended recognition, measurement or disclosure requirements for exploration and evaluation expenditure or other aspects of accounting for extractive activities. The IASB did not find compelling evidence that standard-setting would be necessary.

In December 2023, the IASB published a summary of its project on extractive activities, which considered whether to amend or replace IFRS 6. The document explains the reasons for the IASB taking on the project, the work done, and the key decisions made, including the reasons for deciding to retain IFRS 6.

The IASB acknowledged that diverse accounting policies for exploration and evaluation expenditure would continue to be used in practice. However, feedback from investors and other users of financial statements suggested that those diverse accounting policies were not a significant concern.

Overall, the research findings suggested that any improvements to financial reporting that might result from amending or replacing the requirements in IFRS 6 or other IFRS Accounting Standards are likely to be outweighed by the costs of developing and implementing any such changes.

 

Other Developments

September 2023

On September 26, 2023, the IASB staff updated the work plan to indicate that the Board plans to issue a project summary in December 2023.

July 2023

In July 2023, the IASB staff up­dated the work plan to in­di­cate that the Board plans to de­cide the pro­ject di­rec­tion in September 2023.

May 2023

In May 2023, the IASB staff up­dated the work plan to in­di­cate that the Board plans to de­cide the pro­ject di­rec­tion in Q3 2023.

April 2023

On April 29, 2023, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in July 2023.

February 2023

On February 27, 2023, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in Q3/2023.

January 2023

On January 30, 2023, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in the second half of 2023.  

November 2022

On November 28, 2022, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in Q2/2023.

October 2022

On October 25, 2022, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in the first half of 2023.  

July 2022

On July 25, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in September 2022.

April 2022

On April 29, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in July 2022.

February 2022

On February 28, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q3/2022.

November 2021

On November 23, 2021, the IASB staff updated the Work Plan to decide the project direction in H2/2022.

September 2021

On September 27, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in the first half of 2022.

July 2021

On July 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in September 2021.

April 2021

On April 30, 2021, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in July 2021.

March 2021

On March 26, 2021, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in May 2021.

December 2020

On December 18, 2020, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q2/2021.

October 2020

On October 30, 2020, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q1/2021.

July 2020

On July 23, 2020, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in the first half of 2021.

April 2020

On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review its research in June 2020.

January 2020

On January 31, 2020, the IASB staff updated the Work Plan to indicate that the IASB plans to review its research in Q2/2020.

July 2019

On July 29, 2019, the IASB® staff updated the work plan to indicate that the Board expects to review its research in Q4/2019.

April 2019

On April 12, 2019, the IASB® staff updated the work plan to indicate that the Board plans to review its research in the second half of 2019.

February 2019

On February 8, 2019, the AcSB published an overview of the results of their research on the accounting challenges faced in the extractive sector.

July 2018

On September 20, 2018, the IASB® staff up­dated the work plan to in­di­cate that the Board plans to review research in respect of this project (no date/timing specified for this).

 

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