Which Statement Relating to Mineral Resources Is Untrue

question 54

Multiple Choice

Which statement relating to mineral resources is untrue?

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

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Definitions:

Societal Impact

Societal impact involves the effect that actions or policies have on the well-being and functioning of a society.

Public Company

A rephrased descriptor for a business entity that issues shares of stock available to the public through stock exchanges or over-the-counter markets.

Legal Restrictions

Laws, regulations, or policies that limit or regulate certain behaviors, actions, or practices within a jurisdiction or under specific circumstances.

Initial Public Offering

The first time that the stock of a private company is offered to the public for purchase, typically to raise capital for expansion or operations.