Exam 34: Accounting for Mineral Resources

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

Which costs are within the scope of AASB 6?

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:

The scope of AASB 6 is limited to:

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

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

Accounting policies for exploration and evaluation costs should be determined:

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

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

Which of the following are included in AASB 6/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.

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

AASB 6/IFRS 6 is an example of:

Accounting for the acquisition of equipment to be used in the extraction of mineral resources is covered by:

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

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

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

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

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

Which of the following E&E costs would be classified as intangibles? I - Drilling rights. II - Equipment inspection costs. III - Exploration licenses. IV - Capitalised consumable costs.

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