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 Here

Accounting for Share Purchase Warrants Issued

Visit Here

Asset Acquisition Versus Business Combination

Visit Here

Background on Different Phases of Activities of a Mining Entity

Visit Here

Capitalization of Borrowing Costs

Visit Here

Commencement of Commercial Production

Visit Here

Commodity Prices and Impairment 

Visit Here

Decommissioning Liabilities in Business Combination

Visit Here

Depletion of a Mine in the Production Phase: Useful Life of the Mine

Visit Here

Exploration and Evaluation Expenditures

Visit Here

Farm-out Arrangements in the Exploration and Evaluation Phase

Visit Here

Flow-Through Shares

Visit Here

Functional Currency

Visit Here

Identifying Levies

Visit Here

Impairment of Exploration and Evaluation Assets

Visit Here

Recognition of Corporate Social Responsibility Provisions under IAS 37

Visit Here

Redevelopment of an Inactive Mine by an Existing Owner

Visit Here

A 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.