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AASB 6 - Exploration for and Evaluation of Mineral Resources
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Currency of material  
This material was last updated when this standard was released in December 2004.  
 
A list of the omnibus amending standards issued up until July 2007 that have affected this standard since this date is included in the following table. The table also contains the date when the relevant changes become operative. 
 
Omnibus amending standards are available on the AASB website as are compiled standards incorporating omnibus amendments as soon as they are completed by the AASB. 
 
Details of the changes made by each omnibus are summarised in ANT and Charter’s “The Panel” as they are released. For a quick overview of the new material applying at 30 June 2007 click here.  

 
Text of the Standard 
Summary 
AIFRS compared to IFRS and old AGAAP 
Interpretations and guidance 
Questions and answers 
Articles 
 
 
Summary of AASB 6 
 
The main requirements of AASB 6 are:  
  • Australian entities must use the area of interest method to account for exploration and evaluation expenditures, which means that treatment of these expenditures in the previous Australian Standards AASB 1022 / AAS 7 ‘Accounting for the Extractive Industries’ should Impairment testing must be performed on exploration and evaluation assets when the facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount including: 
     
    i) Rights of tenure have expired or will expire in the near future and are not expected to be renewed; 
     
    ii) Substantive expenditure on further exploration and evaluation in the specific area is neither budgeted or planned; 
     
    iii) The entity has decided to discontinue exploration and evaluation activities in the specific area; and 
     
    iv) Data to hand indicates that the carrying amount of the exploration and evaluation asset is unlikely to be recovered from successful development or from sale. 
     
  • Allows impairment to be assessed at a higher level higher than the “cash generating unit” under AASB 136 being the lesser of: 
     
    i) an area of interest; or 
     
    ii) segment based on AASB 114 ‘Segment Reporting’. 
     
  • Impairment is measured and recognised in accordance with AASB 136 once it is assessed, be maintained subject to impairment testing