AASB 6 Defines Economically Recoverable Reserves to Be

question 44

Multiple Choice

AASB 6 defines economically recoverable reserves to be:

• A) The only source of revenue for firms in the extractive industries.
• B) The quantity of product that can be extracted before the firm makes a loss.
• C) The quantity of product that can be extracted, processed and sold at a profit based on past economic conditions.
• D) Any reserves that can be extracted and will provide a future economic benefit to the entity.
• E) The estimated quantity of the product in the area-of-interest that can be expected to be profitably extracted and sold under current and foreseeable economic conditions.