AASB 6 Only Allows a Choice Between Capitalisation or Expensing

question 66

True/False

AASB 6 only allows a choice between capitalisation or expensing of exploration and evaluation costs when the rights to tenure of the area of interest are current and these expenditures are expected to be recouped through successful development or sale.

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Definitions:

Rough Endoplasmic Reticulum

A network of tubular membranes within the cytoplasm of the cell studded with ribosomes involved in the synthesis of proteins.

Enteric Nervous System

Known as the "second brain," this extensive mesh-like system of neurons controls the function of the gastrointestinal system.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion of food occurs.

Presynaptic Terminals

The ends of axons where neurotransmitters are stored before being released across the synaptic cleft to transmit nerve impulses.