Which statement is not correct?
A)Significant uncertainties exist during mineral exploration.
B)Entities can choose to either capitalize or expense mineral exploration costs.
C)IFRS 6 applies when the mineral resources enter the development phase.
D)Under IFRS, all costs must be expensed if a mineral site is not worthy of further exploration.

Question

Quizplus · Accepted Answer

IFRS 6 applies to the exploration and evaluation of mineral resources, not when the resources enter the development phase. At the development phase, other accounting standards typically take over, such as IAS 16 for property, plant, and equipment.

Which Statement Is Not Correct