Chapter 2 - Mineral Resources Flashcards
1
Q
What standard covers exploration and evaluation of mineral resources?
A
IFRS 6
2
Q
Does expenditure incurred prior to the exploration / evaluation of mineral resources come under IFRS 6?
A
No. Must relate to exploration / evaluation / technical feasibility / commercial viability.
3
Q
Does expenditure incurred after the technical feasibility or commercial viability of mineral resources come under IFRS 6?
A
No. Must relate to exploration / evaluation / technical feasibility / commercial viability.
4
Q
What is the definition of exploration for and evaluation of mineral resources under IFRS 6 ?
A
Covers:
- search for mineral resources after entity has obtained the legal right to explore a specific area
- assessment of the technical feasibility and commercial viability of extracting those mineral resources.
5
Q
What is covered by the term “mineral resources” under IFRS 6 ?
A
- minerals
- oil
- natural gasses
- other similar non-regenerative resources.
6
Q
True or false:
Regenerative resources can be covered by IFRS 6 as a mineral resource
A
False
7
Q
A
