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Deloitte comments on ED 6 on mineral exploration

  • Deloitte Comment Letter Image

16 Apr 2004

We have posted the Exploration for and Evaluation of Mineral Resources (PDF 240k).

Excerpt:

While we applaud the IASB for its efforts to address accounting for the exploration for and evaluation of mineral resources, we question the approach taken in ED 6. That is, to develop an "interim standard" that exempts entities within the scope of the draft standard from complying with certain parts of the Framework and defers addressing recognition and measurement principles until a later date. We do not believe this approach should be precedent for future projects. In contrast, we would prefer that the IASB address these issues as part of a comprehensive project involving the development of proper recognition and measurement principles for the extractive industries.

We understand the IASB's desire to finalise as many of its projects prior to the implementation of International Financial Reporting Standards (IFRS) in Europe. Consequently, we accept the need to provide some interim guidance on the accounting for exploration for and evaluation of mineral resources before a final standard on recognition and measurement principles is completed. Accordingly, we support the development of ED 6 into an International Financial Reporting Standard until such time as the IASB's comprehensive project can be completed.

Deloitte comment letters back to 1995 can be found Here.

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