If an Area-Of Interest Is Abandoned,which of the Following Actions

question 53

Multiple Choice

If an area-of interest is abandoned,which of the following actions is consistent with AASB 6 "Exploration for and Evaluation of Mineral Resources"?

• A) Write-off carrying amount of exploration and evaluation assets and recognize an impairment loss;
• B) Reclassify carrying amount of exploration and evaluation assets to another other area-of-interest;
• C) Re-instatement of previously written off exploration and evaluation assets is not permitted.
• D) Machinery that can be dismantled and used on another area of interest should not be expensed.
• E) None of the given answers.

---

Definitions:

LLP

Limited Liability Partnership, a partnership where some or all partners have limited liabilities, protecting individual partners from the debts of the partnership.

Net Income

The amount of profit that remains after subtracting all the costs, taxes, and expenses from total revenue.

Capital Account Balance

The amount recorded in a company's capital account, representing the net worth or equity of the owners in the business.

Partnership Capital

The total amount invested by all partners in a partnership, representing their ownership interest.