TMI BlogExploration for and Evaluation of Mineral ResourcesX X X X Extracts X X X X X X X X Extracts X X X X ..... or exploration and evaluation expenditures. (b) entities that recognise exploration and evaluation assets to assess such assets for impairment in accordance with this Ind AS and measure any impairment in accordance with Ind AS 36, Impairment of Assets. (c) disclosures that identify and explain the amounts in the entity s financial statements arising from the exploration for and evaluation of mineral resources and help users of those financial statements understand the amount, timing and certainty of future cash flows from any exploration and evaluation assets recognised. Scope 3 An entity shall apply this Ind AS to exploration and evaluation expenditures that it incurs. 4 This Ind AS does not address other aspects of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specifying which expenditures are recognised as exploration and evaluation assets and apply the policy consistently. In making this determination, an entity considers the degree to which the expenditure can be associated with finding specific mineral resources. The following are examples of expenditures that might be included in the initial measurement of exploration and evaluation assets (the list is not exhaustive): (a) acquisition of rights to explore; (b) topographical, geological, geochemical and geophysical studies; (c) exploratory drilling; (d) trenching; (e) sampling; and (f) activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. 1 [ 10 Expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and evaluation expenditures, an entity shall demonstrate that the change brings its financial statements closer to meeting the criteria in Ind AS 8, but the change need not achieve full compliance with those criteria. Presentation Classification of exploration and evaluation assets 15 An entity shall classify exploration and evaluation assets as tangible or intangible according to the nature of the assets acquired and apply the classification consistently. 16 Some exploration and evaluation assets are treated as intangible (eg drilling rights), whereas others are tangible (eg vehicles and drilling rigs). To the extent that a tangible asset is consumed in developing an intangible asset, the amount reflecting that cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entity should test exploration and evaluation assets for impairment (the list is not exhaustive): (a) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed. (b) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned. (c) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area. (d) sufficient data exist to indicate that, although a development in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets, liabilities, income and expense and operating and investing cash flows arising from the exploration for and evaluation of mineral resources. 25 An entity shall treat exploration and evaluation assets as a separate class of assets and make the disclosures required by either Ind AS 16 or Ind AS 38 consistent with how the assets are classified. 2 [Effective date 26 [Refer Appendix 1] 26A Amendments to References to the Conceptual Framework in Ind AS issued in 2021, amended paragraph 10. An entity shall apply that amendment for annual periods beginning on or after 1 April, 2021. An entity shall apply the amendment to Ind AS 106 retrospectively in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reporting Standard (IFRS) 6, Exploration for and Evaluation of Mineral Resources, issued by the International Accounting Standards Board. Comparison with IFRS 6, Exploration for and Evaluation of Mineral Resources 3 [ 1. Paragraph 26 of IFRS 6 related to Effective Date has not been included in Ind AS 106 since it is not relevant in Indian context. The transitional provisions given in IFRS 6 have not been given in Ind AS 106, since all transitional provisions related to Ind ASs, wherever considered appropriate have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards, corresponding to IFRS 1, First-time Adoption of International Financial Reporting Standards. ] Also see in PDF Indian Accounti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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