If Expenditures in Any of the Five Phases of the Extractive

question 16

Multiple Choice

If expenditures in any of the five phases of the extractive industry are not considered likely to lead to an economically viable project:

• A) A post-balance-date adjustment to the amounts recorded as assets in the earlier period should be made to recognise that they were not assets at that time.
• B) The costs should be written off against a reserve created by revaluing the non-current assets held in relation to projects based on a similar natural substance.
• C) The costs should be deferred and amortised against the total revenue earned from all projects based on a similar natural substance.
• D) The costs should be written off as a loss.
• E) None of the given answers.

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