IASB member provides update on Extractives Research Project (IFRS 6)

IASB member Tadeu Cendon has published an article, which provides an update on the IASB’s Extractives Research Project.

IFRS 6 Exploration for and Evaluation of Mineral Resources was issued in 2004 and was intended as an interim step in the accounting for extractives activities. IFRS 6 permits options in how an entity accounts for certain activities.

Since then, the IASB has undertaken research to develop requirements for exploration activities.

At its September 2021 meeting, the IASB decided to:

• Develop requirements or guidance to improve the disclosure objectives and requirements in IFRS 6 Exploration for and Evaluation of Mineral Resources relating to a company’s exploration and evaluation expenditure and activities; and
• Remove the temporary status of IFRS 6.

The article explains the Board’s rationale for these decisions.

The article may be accessed here.