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AASB 6 - Exploration for and Evaluation of Mineral Resources
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Summary 
Developments, Key Differences & History 
Compared to IFRS 
Interpretations 
Rejection Notices 
Questions & Answers 
Articles 
AASB website 

 
Additions 
Aus 2.1 
Which entities AASB 6 applies to, ie. reporting entities and general purpose financial reports. 
 
Aus 2.2 
The application date of AASB 6, ie. annual reporting periods beginning 1 January 2005.  
 
Aus 2.3 
Prohibits early application of AASB 6.  
 
Aus 2.4 
Makes the requirements of AASB 6 subject to AASB 1031 Materiality.  
 
Aus 2.5 
Explains which Australian Standards have been superseded by AASB 6.  
 
Aus 2.6 
Clarifies that the superseded Australian Standards remain in force until AASB 6 applies.  
 
Aus 2.7 
Notice of the new Standard published on 13 December 2004.  
 
Aus 7.1 
The area of interest approach must be applied when accounting for exploration and evaluation costs. For each area of interest the relevant expenditures must be either expensed as incurred or capitalised in accordance with paragraph 7.2. 
 
Aus 7.2 
Recognition requirements for an exploration and evaluation asset in relation to an area of interest which maintain the previous Australian requirements in AASB 1022 Accounting for the Extractive Industries, ie. current rights to tenure and either costs expected to be recoverable or not at a stage to make a proper assessment of recoverability. 
 
Aus 7.3 
Discussion of the meaning of an area of interest including the observation that in most cases it will comprise a single mine or deposit or a separate oil or gas field. 
 
Aus 9.1 
Clarifies that direct and indirect costs associated with exploration and evaluation activities must be allocated to each area of interest (including the costs of outside contractors) for the purpose of expense/asset recognition. 
 
Aus 9.2 
Clarifies that the costs of acquiring lease or other rights to tenure in an area of interest are included if they form part of the exploration and evaluation activities.  
 
Aus 9.3  
Depreciation of equipment used in exploration and evaluation activities is an example of an indirect cost included in the recognition of exploration and evaluation assets.  
 
Aus 9.4  
General and administrative costs are only allocated to the cost of an exploration and evaluation asset if directly related to the operational activities of the relevant area of interest. Examples of general and administrative costs that must be expensed as incurred are directors’ fees and share registry expenses.  
 
Aus 13.1  
If an entity changes its accounting policy for exploration and evaluation expenditures it must nonetheless continue to comply with paragraphs Aus 7.1 and Aus 7.2. 
 
Aus 22.1  
The level identified by the entity for impairment testing of exploration and evaluation assets shall no larger than the relevant area of interest. 
 
Aus 24.1  
If an entity recognises any exploration and evaluation assets, then it must disclose an explanation that recoverability is dependent on successful development and commercial exploitation or through sale.  
 
Aus 27.1  
The fact that an entity is applying the Australian equivalent to IFRS 6 must be disclosed for annual reporting periods beginning before 1 January 2006.  
 
Appendix A  
Additional Australian defined terms for ‘area of interest and ‘economically recoverable reserves’.  
 
Deletions  
26 Effective date of IFRS 6.