AASB 6 Requires Deferred Evaluation and Exploration Costs to Be

question 60

True/False

AASB 6 requires deferred evaluation and exploration costs to be assessed for impairment when there is reason to suspect that the carrying amount may exceed its recoverable amount.

---

Definitions:

Joint Tenant

A co-owner of a property where each tenant has an equal share and rights, with the stipulation that upon the death of one tenant, their share automatically transfers to the surviving joint tenant(s).

Fee Simple Absolute

The most complete form of ownership of real property, which includes the total bundle of rights without duration limit and with the freedom to use or dispose of the property as the owner sees fit.

Land Ownership

The legal right to possess, use, and control a designated area of land.

Life Estate

A property interest that gives a person the right to possess and use property for a time that is measured by his lifetime or that of another person.