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5 Cards in this Set
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b. When the legal right to explore a specific area has been obtained but the technical feasibility and commercial, viability of extracting a mineral resource are not yet demonstrable. |
Exploration and evaluation expenditures are incurred a. When searching for an area that may warrant detailed exploration even though the entity has not yet obtained the legal rights to explore a specific area. b. When the legal right to explore a specific area has been obtained but the technical feasibility and commercial, viability of extracting a mineral resource are not yet demonstrable. c. When a specific area is being developed and preparations for commercial extraction are being made. d. In extracting mineral resource and processing the resource to make it marketable or transportable. |
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c. When required by the entity’s accounting policy for recognizing exploration and evaluation asset. |
When is an entity required to recognize exploration and evaluation expenditure as an asset? a. When such expenditure is recoverable ifi future periods. b. When the technical feasibility and commercial viability of extracting the associated mineral resource have been demonstrated. c. When required by the entity’s accounting policy for recognizing exploration and evaluation asset. d. Such expenditure is always expensed as incurred. |
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c. Expenditures related to the development of mineral resource |
Which of the following expenditures would never qualify as an exploration and evaluation asset? a. Expenditure for acquisitipn of right to explore. b. Expenditure for exploratory drilling c. Expenditures related to the development of mineral resource d. Expenditures for activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. |
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c. Cost model and revaluation model |
Which measurement model applies to exploration and evaluation asset subsequent to initial recognition? a. Cost model b. Revaluation model c. Cost model and revaluation model d. Recoverable amount model |
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d. None of these should be included in exploration and evaluation expenditures. |
Which type of expenditure is included in exploration and evaluation of mineral resources? a. The extraction and processing of mineral resource for transport to market. b. The commercial review of possible areas for mineral extraction before bidding for the legal right to explore a speciflc area. c. The expenditure incurred after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. d. None of these should be included in exploration and evaluation expenditures. |
