Which Statement Relating to Mineral Resources Is Not True

question 46

Multiple Choice

Which statement relating to mineral resources is not true?

• A) The cost at which mineral resources are recorded may include amounts spent on exploration and development.
• B) As the mineral resource asset is used up its cost is proportionately transferred to an amortisation (depletion) expense account.
• C) The most common approach to the calculation of the depletion of mineral resources is the reducing-balance method.
• D) Accounting for mineral resources is governed by IAS 16/AASB 116.

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