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.

Question

Quizplus · Accepted Answer

The reducing-balance method is not the most common approach to the calculation of the depletion of mineral resources. The most common method is the units-of-production method. Therefore, statement D is untrue. Statements A, B, and C are all true.

Which Statement Relating to Mineral Resources Is Untrue