Which of the following statements is correct?
A) Entities engage in extractive operations should adopt AASB 116 Property, Plant and Equipment in the amortisation of capitalised costs.
B) Entities engaged in extractive operations should adopt AASB 6 in accounting for inventories.
C) The obligations of entities engaged in extractive operations with respect to restoration costs are outlined in AASB 6.
D) Entities engaged in extractive operations should adopt AASB 116 Property, Plant and Equipment in the amortisation of capitalised costs and AASB 6 in accounting for inventories.

Question

Quizplus · Accepted Answer

AASB 116 Property, Plant and Equipment is relevant for the amortisation of capitalised costs for entities engaged in extractive operations, not AASB 6 which deals with exploration for and evaluation of mineral resources.

Which of the Following Statements Is Correct