Question 1

Which of the following methods tends to be restricted to small mining companies in South Africa?

Accepted Answer

A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method 
A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method

Question 2

Which of the following statements in relation to the use of the revaluation model to subsequently account for E&E assets is correct?

Accepted Answer

A)  The revaluation model can only be used to account for tangible E&E assets. 
B)  The revaluation model can be used for intangible E&E assets where the fair value can be reliably measured. 
C)  The revaluation model can be used for tangible E&E assets only where there is an active market for the assets. 
D)  The revaluation model can be used for tangible E&E assets where the fair value can be reliably measured. 
A)  The revaluation model can only be used to account for tangible E&E assets. 
B)  The revaluation model can be used for intangible E&E assets where the fair value can be reliably measured. 
C)  The revaluation model can be used for tangible E&E assets only where there is an active market for the assets. 
D)  The revaluation model can be used for tangible E&E assets where the fair value can be reliably measured.

Question 3

The majority of an entity's obligations for removal and restorations costs are incurred during which phase of a project?

Accepted Answer

A)  exploration phase 
B)  technical feasibility phase 
C)  development phase 
D)  evaluation phase 
A)  exploration phase 
B)  technical feasibility phase 
C)  development phase 
D)  evaluation phase

Question 4

Which of the following methods best reflects the traditional concept of an asset?

Accepted Answer

A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method 
A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method

Question 5

Which of the following statements in relation to assessing E&E assets for impairment is correct?

Accepted Answer

A)  The level at which and E&E asset is tested for impairment may consist of one or more cash-generating units 
B)  AASB 6 allows the cash-generating unit or group of cash-generating units to which an E&E asset is allocated to be larger than a segment determined in accordance with IFRS 8. 
C)  AASB 6 allows E&E assets to be tested for impairment at the individual asset level 
D)  AASB 6 does not allow the reversal of impairment write-downs made against E&E assets 
A)  The level at which and E&E asset is tested for impairment may consist of one or more cash-generating units 
B)  AASB 6 allows the cash-generating unit or group of cash-generating units to which an E&E asset is allocated to be larger than a segment determined in accordance with IFRS 8. 
C)  AASB 6 allows E&E assets to be tested for impairment at the individual asset level 
D)  AASB 6 does not allow the reversal of impairment write-downs made against E&E assets

Question 6

Which of the following statements is correct?

Accepted Answer

A)  The AASB extractive industries project currently underway excludes disclosure requirements from its scope 
B)  AASB 6 was issued by the AASB as an interim measure pending the completion of a comprehensive project dealing with accounting for the extractive industries 
C)  The AASB extractive industries project currently underway proposed the removal of the 'unit of account' concept in accounting for E&E assets 
D)  AASB 6 was issued by the AASB as a result of their recent comprehensive extractive industries project 
A)  The AASB extractive industries project currently underway excludes disclosure requirements from its scope 
B)  AASB 6 was issued by the AASB as an interim measure pending the completion of a comprehensive project dealing with accounting for the extractive industries 
C)  The AASB extractive industries project currently underway proposed the removal of the 'unit of account' concept in accounting for E&E assets 
D)  AASB 6 was issued by the AASB as a result of their recent comprehensive extractive industries project

Question 7

Subsequent to initial recognition E&E assets are required to be measured:

Accepted Answer

A)  under the cost model 
B)  under the revaluation model 
C)  either under the cost model or revaluation model 
D)  at the lower of the cost and fair value 
A)  under the cost model 
B)  under the revaluation model 
C)  either under the cost model or revaluation model 
D)  at the lower of the cost and fair value

Question 8

Which of the following is NOT included as part of the initial cost of exploration and evaluation assets?

Accepted Answer

A)  exploratory drilling 
B)  miming acquisition rights 
C)  trenching 
D)  pre-exploration survey fees 
A)  exploratory drilling 
B)  miming acquisition rights 
C)  trenching 
D)  pre-exploration survey fees

Question 9

Which of the following methods is inconsistent with historical cost accounting?

Accepted Answer

A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method 
A)  the area of interest method 
B)  the successful efforts method 
C)  the appropriation method 
D)  the full cost method

Question 10

AASB 6 requires disclosure of which of the following?

Accepted Answer

A)  accounting policies relating to pre-exploration costs 
B)  financing cash flows relating to E&E activities 
C)  impairment write-downs made on E&E assets 
D)  accounting policies relating to E&E assets 
A)  accounting policies relating to pre-exploration costs 
B)  financing cash flows relating to E&E activities 
C)  impairment write-downs made on E&E assets 
D)  accounting policies relating to E&E assets

Which of the following methods tends to be restricted to small mining companies in South Africa?

Which of the following statements in relation to the use of the revaluation model to subsequently account for E&E assets is correct?

The majority of an entity's obligations for removal and restorations costs are incurred during which phase of a project?

Which of the following methods best reflects the traditional concept of an asset?

Which of the following statements in relation to assessing E&E assets for impairment is correct?

Which of the following statements is correct?

Subsequent to initial recognition E&E assets are required to be measured:

Which of the following is NOT included as part of the initial cost of exploration and evaluation assets?

Which of the following methods is inconsistent with historical cost accounting?

AASB 6 requires disclosure of which of the following?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters

Exam 17: Accounting for Mineral Resources

Which of the following methods tends to be restricted to small mining companies in South Africa?

Which of the following statements in relation to the use of the revaluation model to subsequently account for E&E assets is correct?

The majority of an entity's obligations for removal and restorations costs are incurred during which phase of a project?

Which of the following methods best reflects the traditional concept of an asset?

Which of the following statements in relation to assessing E&E assets for impairment is correct?

Which of the following statements is correct?

Subsequent to initial recognition E&E assets are required to be measured:

Which of the following is NOT included as part of the initial cost of exploration and evaluation assets?

Which of the following methods is inconsistent with historical cost accounting?

AASB 6 requires disclosure of which of the following?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters