IFRS – Mining & Exploration
Canada’s move to International Financial Reporting Standards (IFRSs) creates challenges for junior mining companies due to the significant differences in characteristics between exploration companies in their development stages and other types of companies. Chartered Professional Accountants Canada (CPA Canada) joined with other organizations to create non-authoritative guidance on IFRS application issues of relevance to these kinds of companies.
For Viewpoints on junior oil and gas companies, click here.
CPA Canada and the Prospectors and Developers Association of Canada (PDAC) created the Mining Industry Task Force on IFRSs to share views on IFRS application issues of relevance to junior mining companies.
The following topics have been addressed by the Task Force:
Accounting for Precious Metal Streaming Arrangements by the Producer
Visit HereAccounting for Share Purchase Warrants Issued
Visit HereAsset Acquisition Versus Business Combination
Visit HereBackground on Different Phases of Activities of a Mining Entity
Visit HereCapitalization of Borrowing Costs
Visit HereCommencement of Commercial Production
Visit HereCommodity Prices and Impairment
Visit HereDecommissioning Liabilities in Business Combination
Visit HereDepletion of a Mine in the Production Phase: Useful Life of the Mine
Visit HereExploration and Evaluation Expenditures
Visit HereFarm-out Arrangements in the Exploration and Evaluation Phase
Visit HereFlow-Through Shares
Visit HereFunctional Currency
Visit HereIdentifying Levies
Visit HereImpairment of Exploration and Evaluation Assets
Visit HereRecognition of Corporate Social Responsibility Provisions under IAS 37
Visit HereRedevelopment of an Inactive Mine by an Existing Owner
Visit HereA complete list of the Mining Viewpoints can be found here.
Although the views expressed in these Viewpoints are non-authoritative and have not been formally endorsed by CPA Canada, PDAC or the organizations represented by the task force members, they are generally considered to be best practice. If companies intend on implementing practices that are inconsistent with these Viewpoints, thorough consultation with their auditors should be undertaken. For more information, contact our Mining & Exploration team below.
