Which Statement Is Not Correct

question 70

Multiple Choice

Which statement is not correct?

• A)In accounting for mineral resources, IFRS 6 applies for the exploration and evaluation phase.
• B)In accounting for mineral resources, IAS 38 applies for the development phase.
• C)A mineral site entering the development phase would normally satisfy the six criteria required for capitalization.
• D)In accounting for mineral resources, IAS 38 is not applicable for any phase.

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Definitions:

Premium on Stock

The amount by which the price paid for a stock exceeds its par (or nominal) value, representing additional capital paid in by investors.

Treasury Stock

Stocks that the issuing entity initially sold and then bought back, decreasing the total number of stocks available in the market.

Contra Equity

An equity account that reduces the total amount of equity, such as treasury stock or drawings account.

Asset Account

An asset account is a ledger account that tracks the value of assets owned by an individual or organization, including tangible and intangible items of value.