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Munich Personal RePEc Archive

IFRS 6 exploration for and evolution of mineral resources - a closer look
K S Muthupandian
The Institute of Cost and Works Accountants of India

20. February 2008

Online at MPRA Paper No. 40300, posted 29. July 2012 04:15 UTC

IFRS 6 Exploration for and Evaluation of Mineral Resources - A Closer Look
03 8603 1000)

In the absence of a global accounting standard dealing specifically with extractive activities
(mining and oil and gas), the International Accounting Standards Committee (IASC) published the Issues Paper Extractive Industries in November 2000. The International Accounting Standards Board (IASB) carried over the Project on extractive industries from its predecessor organization IASC on 1 April 2001. The IASB, on 16 January 2004, issued Exposure Draft ED 6 Exploration for and Evaluation of Mineral Resources. Following comments received on ED 6, IASB on 9 December 2004, issued International Financial Reporting Standard (IFRS) 6 Exploration for and Evaluation of Mineral Resources. IFRS 6 is shorter than many recent standards running to a mere 27 paragraphs excluding appendices. Introducing IFRS 6, Sir David Tweedie, IASB Chairman, said: Developing a widely respected accounting standard that addresses the many complex practical and conceptual problems in the accounting for extractive activities is a concern for the IASB. However, the Board could not consider and reach an informed conclusion on all issues and viewpoints and complete its work by the 2005 deadline for the introduction of IFRSs in many jurisdictions. At the urging of some of our partner national standard-setters and other interested parties, the IASB has developed IFRS 6 to provide some initial guidance on accounting for some extractive activities without imposing significant costs on those industries in advance of completing the larger project. Although the requirements are not...

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