Exam 27: Exploration for and Evaluation of Mineral Resources

Which of the following are included in IFRS 6 as factors indicating the E&E assets may be impaired? I whether the exploration rights for the specific area have expired or are expected to expire in the near future and there is no expectation of renewal II where there is no budget or plan for the incurrence of further substantial E&E expenditure in the specific area III where the entity had decided to discontinue E&E activities in the specific area on the basis that such activities have not led to the discovery of commercially viable quantities of mineral resources IV where the entity has established that the cost of the E&E asset is unlikely to be recovered in full from the successful development or sale of the specific area

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

IFRS 6 is an example of:

Which of the following methods best reflects the volatility inherent in E&E activities?

E&E assets are required to be tested for impairment:

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

The journal entry required to recognise depreciation on a drilling rig that is being used in the exploration phase of a mining project is:

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

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

The scope of IFRS 6 is limited to:

The IFRS Interpretations Committee issued an interpretation in relation to the accounting for surface mine stripping costs (i.e., removal of rocks, soil and other waste materials to access the relevant mineral deposits) incurred during the production phase. The interpretation proposes:

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

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

Most large oil and gas companies use which of the following methods to account for exploration and evaluation costs?

Which of the following statements is correct?

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

The obligation to record a provision for removal and restoration costs arising from mining exploration and evaluation arises through the application of:

IFRS 6 Exploration for and Evaluation of Mineral Resources was issued by the IASB in:

Which of the following E&E costs would be classified as intangibles? I $\quad$ drilling rights II $\quad$ equipment inspection costs III $\quad$ exploration licenses IV $\quad$ capitalized consumable costs

Mineral resources are specifically excluded from the scope of which of the following standards? I IAS 2 Inventories II IAS 16 Property, plant & equipment III IAS 18 Revenue IV IAS 38 Intangible assets