IASB issues Extractive Activities discussion paper
07 Apr, 2010
The IASB has published a Discussion Paper (DP) Extractive Activities setting out the results of an international research project on a possible future International Financial Reporting Standard for extractive activities.
Extractive activities are the activities undertaken by entities when searching for, and ultimately extracting, minerals, oil or natural gas. The activities involve the following four phases:
- Exploration: the search for deposits of minerals or oil and gas
- Evaluation: assessing the quantity and quality and viability of the deposits found and the economic viability of their extraction
- Development: undertaking works to access the deposit and to construct the infrastructure necessary to extract the minerals or oil and gas
- Production: the extraction of the minerals or oil and gas from those deposits
- How to estimate and classify the quantities of minerals or oil and gas discovered
- How to account for minerals or oil and gas properties
- How minerals or oil and gas properties should be measured
- What information about extractive activities should be disclosed