Straight away: The IASB publishes Discussion Paper on ‘Extractives Activities’ project

What is the issue?

The IASB formally published the Extractive Activities Discussion Paper (DP) on 6 April 2010. The discussion paper sets out proposals to address some of the current accounting challenges of the mining and oil & gas industries for upstream activities. A draft version of the DP has been available on the IASB website for some months and the only substantive changes from that version in the published DP are:

  • clarification of the approach to cost allocation to the unit of account and when impairment events may be considered to have occurred;
  • suggested presentation requirements for exploration assets and additional disclosure of why the assets continue to be carried;
  • and guidance on the extent to which the new reserve disclosures are expected to be audited.