IAS 36 Impairment of undeveloped reserves by entities engaged in extractive activities

Date recorded:


The IFRIC considered a potential issue as to whether the recoverable amount of a cash-generating unit of an entity with extractive activities (typically a site) for which production has commenced should include the expected cash inflows from, and cash outflows necessarily incurred in, developing the site further in order to access undeveloped reserves over the life of the site.


Decision not to add

May 2004



The IFRIC decided not to add this issue to its agenda, but requested it be considered by the Board during its redeliberation of ED 6 Exploration for and Evaluation of Mineral resources.


IFRIC reference: IAS 36

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