Extractive Activities
The extractive activities project is a comprehensive research project that forms the first step towards the development of an acceptable approach to resolving accounting issues that are unique to upstream extractive activities. The ultimate objective of this project is to develop an International Financial Reporting Standard (IFRS) on accounting for extractive activities. This IFRS will supersede IFRS 6 Exploration for and Evaluation of Mineral Resources , which the Board released in December 2004 as an interim measure pending completion of the comprehensive project.
Project scope
Upstream extractive activities cover all aspects of the search for, finding, and extraction of minerals, oil and gas. The primary focus of the research project is to consider financial reporting issues associated with reserves and resources (including the exploration for reserves and resources) – in particular whether and how to define, recognise, measure and disclose reserves and resources.
Where are we in the project?
In August 2009, the project team posted a working draft of the forthcoming discussion paper on the IASB website for the information of interested parties.
What will happen next?
The IASB plans to publish the discussion paper prepared by the project team together with a request for views in the first quarter of 2010
Estimated project completion
After publication of the request for views, the Board must make a decision about adding the project to its active agenda. Once that decision has been made, the project team estimates that an exposure draft would take at least 18 months to develop and that a final IFRS would take at least another 12 months to develop.
Is this project part of the Memorandum of Understanding?
No. The MoU sets out a Roadmap for Convergence between IFRSs and US GAAP.
Click here for more information on the MoU.