Download Indian Accounting Standard (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.
An entity shall not apply this Ind AS to expenditures incurred:
(a) before the exploration for and evaluation of mineral resources, such as expenditures incurred before the entity has obtained the legal rights to explore a specific area.
(b) after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.