IASB issues ED 6 on exploration for mineral resources

  • IASB Exposure Draft (original) Image

15 Jan 2004

The IASB has invited comment on its Exposure Draft ED 6, Exploration for and Evaluation of Mineral Resources.

ED 6 proposes to exempt companies engaged in exploring for and evaluating mineral resources from certain requirements of IFRSs and the IASB Framework. Those companies would be permitted to continue using, under IFRS, the accounting policies for recognising and measuring assets arising from mineral exploration and evaluation activities that were used in their most recent annual financial statements. A company that elects to use its previous accounting policies should then change those policies if, and only if, the change makes the financial statements more relevant and reliable.

In addition, ED 6 proposes indicators to be considered when identifying whether exploration and evaluation assets might be impaired. It also proposes a "cash generating unit for exploration and evaluation assets" under IAS 36 Impairment of Assets.

The proposals would be effective for annual periods beginning on or after 1 January 2005. That is, the final IFRS would be followed by European and other companies that adopt IFRS in 2005. ED 6 may be downloaded from the IASB's Website. Comment deadline is 16 April 2004. Click: Press Release (PDF 32k). Summary of ED 6.


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