Australian Accounting Standard AASB 6 Exploration for and Evaluation of Mineral

question 22

Multiple Choice

Australian Accounting Standard AASB 6 Exploration for and Evaluation of Mineral Resources states that exploration and evaluation costs of a mining operation:

• A) can be recognised as expenses or carried forward as an asset depending on the circumstances of the particular operation
• B) must be accounted for in accordance with Australian Accounting Standard AASB 116 'Property, Plant and Equipment'
• C) must be recognised as expenses as they are incurred
• D) must be carried forward as an asset until production commences

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Definitions:

Exemplification

The act of illustrating or showing by example; often used in teaching and explanation strategies.

Identification

Bolstering self-esteem by forming an imaginary or real alliance with some person or group.

Intimidation

The act of making someone feel frightened or overawed, especially in order to make them do what one wants.

Impression Management

Usually conscious efforts by people to influence how others think of them.