The staff suggested that the guidance in the proposed exposure draft was incomplete in that it addressed only those expenditures that could be included in the exploration and evaluation asset and did not address those expenditures that could not be included. The staff proposed including guidance based on equivalent paragraphs in IAS 16 that addresses initial and subsequent measurement. The staff believed that having specified the initial measurement, guidance on subsequent measurement should also be included.

The staff noted a concern that the requirement to recognise an asset initially at cost might be a change in practice - for example, an entity might include some estimate of the value of reserves in the initial carrying amount of the exploration and evaluation asset recognised. In addition the requirement to apply either IAS 16 or IAS 38 might cause changes to existing practices.

The Board noted the concerns but agreed with the staff's proposal.