IFRS 6EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES
• Entity need to obtain legal rights to explore in a specific area• Exploration and evaluation expenditures are expenditures incurred• Expenditures recognized as assets in accordance with the entity’s accounting policy.
• Allows continuing to use recognition and measurement practices that are part of those accounting policies• Impairment test on those assets when – Carrying amount > Recoverable amount – Period expiration – No fruitful discovery made
• Disclosure – Amounts recognized in its financial statements arising from the exploration for and evaluation of mineral resources
• To evaluate the nature and financial effects of the business activities in which it operates.• Deciding how to allocate resources and in assessing performance
• IFRS 8 shall apply to: – Separate or individual financial statements of an entity – Consolidated financial statements of a group with a parent • debt or equity instruments are traded in a public market • purpose of issuing any class of instruments in a public market
Disclosure:-– About its operating segments in interim financial reports.– About products and services, geographical areas and major customers.