30 October 2020

Extractive industries need better standard

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. When was IFRS 6 issued?

  2. Which of these is an issue relating to IFRS 6?

  3. Which, if any, of the following statements is true regarding the capitalisation of exploration and evaluation expenditure? Statement 1 - It is capitalised as a tangible asset by entities, or Statement 2 - It is capitalised as an intangible asset by entities

  4. Why wouldn’t exploration and evaluation criteria be capitalised under IAS 16 Property, Plant and Equipment?

  5. Why wouldn’t exploration and evaluation criteria be capitalised under IAS 38 Intangible Assets?

  6. If IFRS 6 were removed, what would be the likely effect on companies using the treatment from other existing standards?

  7. What is the current stage of the IASB’s work on IFRS 6?

  8. Which of these statements relating to impairments and exploration and evaluation assets is true? Statement 1 - IFRS 6 follows different principles to IAS 36, or Statement 2 - If IAS 36 were applied, it is likely all costs would be written off

  9. What was the outcome of the research project on IFRS 4 Insurance Contracts, released around the same time as IFRS 6?

  10. Which, if any, of the following statements is correct? Statement 1 - IFRS 6 was initially issued as an interim step while research was conducted, or Statement 2 - IFRS 6 is likely to be merged with IAS 38 in a new research-based standard

1 Unit

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