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Commission Regulation
(EC) No 1910/2005 of 08 November 2005
amending
Regulation (EC) No 1725/2003
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Objective
1. The
objective of this IFRS is to specify the financial
reporting for the exploration for and evaluation of
mineral resources.
2. In
particular, the IFRS requires:
(a)
limited improvements to existing accounting
practices for exploration and evaluation
expenditures.
(b)
entities that recognise exploration and evaluation
assets to assess such assets for impairment in
accordance with this IFRS and measure any impairment
in accordance with IAS 36 Impairment of Assets.
(c)
disclosures that identify and explain the amounts in
the entity’s financial statements arising from the
exploration for and evaluation of mineral resources
and help users of those financial statements
understand the amount, timing and certainty of
future cash flows from any exploration and
evaluation assets recognised.
Scope
3. An entity
shall apply the IFRS to exploration and evaluation
expenditures that it incurs.
4. The IFRS
does not address other aspects of accounting by entities
engaged in the exploration for and evaluation of mineral
resources.
5. An entity
shall not apply the IFRS to expenditures incurred:
(a) before
the exploration for and evaluation of mineral
resources, such as expenditures incurred before the
entity has obtained the legal rights to explore a
specific area.
(b) after
the technical feasibility and commercial viability
of extracting a mineral resource are demonstrable.
Recognition of Exploration and Evaluation Assets
Temporary exemption from IAS 8 paragraphs 11 and 12
6. When
developing its accounting policies, an entity
recognising exploration and evaluation assets shall
apply paragraph 10 of IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors.
7. Paragraphs
11 and 12 of IAS 8 specify sources of authoritative
requirements and guidance that management is required to
consider in developing an accounting policy for an item
if no IFRS applies specifically to that item. Subject to
paragraphs 9 and 10 below, this IFRS exempts an entity
from applying those paragraphs to its accounting
policies for the recognition and measurement of
exploration and evaluation assets.
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