IFRS 6 exploration for and evolution of mineral resources - a closer look

The International Accounting Standards Board issued the International Financial Reporting Standard 6 Exploration for and evaluation of mineral resources. It relates to the search for mineral resources, including minerals, oil, natural gas and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral resource. The objective of IFRS 6 is to specify the financial reporting for the exploration for and evaluation of mineral resources. An entity should determine an accounting policy for allocating these assets to groups of cash generating units and apply that policy consistently. This article presents a closer look of the standard (objective, scope, accounting policies, and disclosures).