International briefing - IASB - Mineral resources

The International Accounting Standards Board has issued

IFRS 6, Exploration for and Evaluation of Mineral Resources, which applies to accounting periods beginning on or after 1 January 2006. Earlier application is encouraged.

As with

IFRS 4, Insurance Contracts, IFRS 6 is a temporary standard pending a more extensive IASB project.

IFRS 6 permits an entity to continue with its existing accounting for exploration and evaluation assets instead of applying the accounting policies hierarchy in IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to those assets. However, the entity must perform an impairment test on those assets but IFRS 6 varies from that in IAS 36, Impairment of Assets, on the recognition of impairment and the level at which impairment is assessed.

IFRS 6 is available from www.iasb.org.
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