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The International Accounting Standards Board (Board) is exploring whether to develop requirements or guidance to improve the disclosure objectives and requirements in IFRS 6 Exploration for and Evaluation of Mineral Resources relating to an entity’s exploration and evaluation expenditure and activities. The Board is also exploring whether to remove the temporary status of IFRS 6.

The Board is considering what research would be required to identify the information users of financial statements need about exploration and evaluation expenditure and activities, why they do not currently get that information and the costs and benefits of requiring an entity to provide that information.

IASB® Update September 2021

The Board met on 23 September 2021 to discuss the scope and objectives of its Extractive Activities research project.

Project scope and objectives (Agenda Paper 19A)

The Board tentatively decided that the project’s scope and objectives should be to explore two aspects of IFRS 6 Exploration for and Evaluation of Mineral Resources:

  1. developing requirements or guidance to improve the disclosure objectives and requirements about an entity’s exploration and evaluation (E&E) expenditure and activities to provide more useful information to primary users of financial statements.
    All 12 Board members agreed with this decision.
  2. removing the temporary status of IFRS 6.
    Eight of 12 Board members agreed with this decision.

In reaching these decisions, the Board made a series of more detailed tentative decisions.

Matters in the scope of IFRS 6 (Agenda Paper 19C)

The Board tentatively decided to explore developing requirements or guidance to improve disclosures about E&E expenditure and activities.

The Board tentatively decided not to develop requirements or guidance about the unit of account to apply to E&E expenditure or about which E&E expenditures to capitalise and when to start and stop capitalisation.

The Board also tentatively decided not to develop requirements for standardising the accounting for intangible E&E expenditure and research and development expenditure. The Board also tentatively decided not to develop additional requirements or guidance for the impairment of E&E assets.

All 12 Board members agreed with these decisions.

Matters outside the scope of IFRS 6 (Agenda Paper 19D)

In relation to matters outside the scope of IFRS 6, the Board tentatively decided not to develop requirements or guidance for the application of other IFRS Standards as part of its Extractive Activities research project. The Board also tentatively decided not to consider further the accounting for collaborative arrangements or disclosures that are not specifically required by IFRS Standards as part of the project.

All 12 Board members agreed with these decisions.

Reserve and resource information (Agenda Paper 19E)

The Board tentatively decided not to explore developing requirements or guidance for reserve and resource information in financial statements.

All 12 Board members agreed with this decision.

Next milestone

Decide Project Direction