Exam 16: Accounting for 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

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

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 scope of IFRS 6 is limited to:

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?