• 2024 Issued Standard – IFRS 6
  The 2024 Issued Standards include all amendments issued up to and including 31 December 2023.

Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).

Note that the Issued Standards contain amendments that have a mandatory effective date that is later than 1 January 2024.

IFRS 6 provides guidance on accounting for exploration and evaluation expenditures, including the recognition of exploration and evaluation assets. The following are specifically excluded from its scope:

• expenditures incurred before legal rights of exploration are obtained, and
• expenditures incurred after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.

Exploration and evaluation assets should initially be measured at cost in the statement of financial position (balance sheet). After recognition, either the cost or revaluation model of IAS 16/IAS 38 may be applied. Impairment tests are required when circumstances suggest that the carrying amount of the assets may exceed their recoverable amount.

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.