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Please provide summary on Ind AS 106 - Exploration for and Evaluation of Mineral Resources

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Prity asked almost 3 years ago

Please provide summary on Ind AS 106 - Exploration for and Evaluation of Mineral Resources

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Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal answered over 2 years ago

Please provide summary on Ind AS 106 - Exploration for and Evaluation of Mineral Resources The objective of this Indian Accounting Standard (Ind AS) is to specify the financial reporting for the exploration for and evaluation of mineral resources. In particular, the Ind AS requires: (a) limited improvements to existing accounting practices for 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. An entity shall apply this Ind AS to exploration and evaluation expenditures that it incurs. This Ind AS does not address other aspects of accounting by entities engaged in the exploration for and evaluation of mineral resources.

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Data?1494421730 rohit awasthi answered almost 3 years ago

Dear Roshni > Ind AS 106 - Exploration for and Evaluation of Mineral Resources Ind AS 106, ‘Exploration for and evaluation of mineral resources’, addresses the financial reporting for the exploration for and evaluation of mineral resources. It does not address other aspects of accounting by entities engaged in the exploration for and evaluation of mineral reserves. Activities outside the scope of Ind AS 106 are accounted for as per the applicable standards. The accounting policy adopted for the recognition of exploration and evaluation assets should result in relevant and reliable information. Ind AS 106 permits companies in this sector to continue applying policies for the recognition of exploration and evaluation assets that were followed under the previous GAAP. The accounting policy may be changed only if the change makes the financial statements more relevant and no less reliable, or more reliable and no less relevant. Exploration and evaluation assets are initially measured at cost. They are classified as tangible or intangible assets, according to the nature of the assets acquired. Management applies that classification consistently. After recognition, management applies either the cost model or the revaluation model to the exploration and evaluation assets. The exploration and evaluation assets are tested for impairment when facts and circumstances suggest that the carrying amounts may not be recovered. The assets are also tested for impairment before reclassification out of exploration and evaluation. Appendix B, ‘Stripping costs in the production phase of a surface mine’, contained in Ind AS 16, ‘Property, plant and equipment’, applies to waste removal costs incurred in surface mining activity during the production phase. Thanks

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