The scope of IFRS 6 Exploration for and Evaluation of Mineral Resources is limited to the recognition, measurement and disclosure of expenditure incurred in the phase covering the Exploration for and Evaluation (Exploration and evaluation) of mineral resources. Although the term used is ‘mineral resources’, the definitions in IFRS 6 clarify that this extends to cover minerals, oil, natural gas and other similar nonregenerative resources meaning that it applies across the extractives industry sector.
The limitation of scope to cover the exploration and evaluation phase means that IFRS 6 does not apply to expenditure incurred:
- In the previous prospecting phase;
- In all phases after the Exploration and evaluation phase has been completed, including development, production, closure and