Question 1

Which costs are within the scope of IFRS 6?

Accepted Answer

A)  Pre-exploration and evaluation phase expenditure 
B)  Exploration and evaluation phase expenditure 
C)  Development phase expenditure 
D)  All of the above 
A)  Pre-exploration and evaluation phase expenditure 
B)  Exploration and evaluation phase expenditure 
C)  Development phase expenditure 
D)  All of the above

Question 2

Which of the following methods is the least applied method to account for exploration and evaluation costs?

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 3

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 4

Which of the following is NOT within the scope of the IASB extractive activities project?

Accepted Answer

A)  the definition of reserves and resources 
B)  whether to expense or capitalise costs recognised after recognition of reserves and resources as assets 
C)  measurement of reserves and resources on initial recognition as an asset 
D)  disclosure requirements for reserves and resources 
A)  the definition of reserves and resources 
B)  whether to expense or capitalise costs recognised after recognition of reserves and resources as assets 
C)  measurement of reserves and resources on initial recognition as an asset 
D)  disclosure requirements for reserves and resources

Question 5

The entry to record an obligation for removal and restoration incurred during the exploration and evaluation (E&E) phase of a mining project is:

Accepted Answer

A)  DR $\quad$E&E asset $\quad$$\quad$XX
CR $\quad$E&E expense$\quad$XX 
B)  DR $\quad$E&E expense$\quad$$\quad$$\quad$XX
CR $\quad$Provision for removal and restoration$\quad$XX 
C)  DR $\quad$Removal and restoration expense $\quad$XX
CR $\quad$E&E asset$\quad$$\quad$$\quad$XX 
D)  DR $\quad$E&E asset$\quad$$\quad$$\quad$XX
CR $\quad$Provision for removal and restoration$\quad$XXX 
A)  DR $\quad$E&E asset $\quad$$\quad$XX
CR $\quad$E&E expense$\quad$XX 
B)  DR $\quad$E&E expense$\quad$$\quad$$\quad$XX
CR $\quad$Provision for removal and restoration$\quad$XX 
C)  DR $\quad$Removal and restoration expense $\quad$XX
CR $\quad$E&E asset$\quad$$\quad$$\quad$XX 
D)  DR $\quad$E&E asset$\quad$$\quad$$\quad$XX
CR $\quad$Provision for removal and restoration$\quad$XXX

Question 6

In the context of IFRS 6, E&E stands for:

Accepted Answer

A)  evaluation and extraction 
B)  exploration and evaluation 
C)  extraction and exploration 
D)  exploration and expenditure 
A)  evaluation and extraction 
B)  exploration and evaluation 
C)  extraction and exploration 
D)  exploration and expenditure

Question 7

IFRS 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

Question 8

Which of the following methods involves capitalizing exploration and evaluation costs using a larger cost centre than an area of interest such as a country of region?

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

Which costs are within the scope of IFRS 6?

Which of the following methods is the least applied method to account for exploration and evaluation costs?

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

Which of the following is NOT within the scope of the IASB extractive activities project?

The entry to record an obligation for removal and restoration incurred during the exploration and evaluation (E&E) phase of a mining project is:

In the context of IFRS 6, E&E stands for:

IFRS 6 requires disclosure of which of the following?

Which of the following methods involves capitalizing exploration and evaluation costs using a larger cost centre than an area of interest such as a country of region?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Filters

Exam 27: Exploration for and Evaluation of Mineral Resources

Which costs are within the scope of IFRS 6?

Which of the following methods is the least applied method to account for exploration and evaluation costs?

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

Which of the following is NOT within the scope of the IASB extractive activities project?

The entry to record an obligation for removal and restoration incurred during the exploration and evaluation (E&E) phase of a mining project is:

In the context of IFRS 6, E&E stands for:

IFRS 6 requires disclosure of which of the following?

Which of the following methods involves capitalizing exploration and evaluation costs using a larger cost centre than an area of interest such as a country of region?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Filters