What does it mean by Exploration for and evaluation of mineral resources, Oil and Gas?
It is basically search for mineral resources, including minerals, oil, natural gas and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral resource. Relevant IFRS applicable for Exploration and evaluation of Mineral resources, Oil and Gas Industry • IFRS 6: Exploration for and Evaluation of Mineral Resources • IAS 16 – Component accounting for assets • IAS 36 – Impairments • IAS 37 – Asset retirement obligations • IAS 38 – Intangible assets • IFRS 1 – opening balance sheet What are the Exploration for and Evaluation Cost? • Lease acquisition rights • Technical studies and services • Seismic costs • Geologic and geophysical costs • Exploratory drilling and testing • Tangible and intangible costs Transition issues (IFRS1) Requires retrospective restatement of beginning balances which is subject to very high cost and limited
