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 ProducerVisit Here
Accounting for Share Purchase Warrants IssuedVisit Here
Asset Acquisition Versus Business CombinationVisit Here
Background on Different Phases of Activities of a Mining EntityVisit Here
Capitalization of Borrowing CostsVisit Here
Commencement of Commercial ProductionVisit Here
Commodity Prices and ImpairmentVisit Here
Decommissioning Liabilities in Business CombinationVisit Here
Depletion of a Mine in the Production Phase: Useful Life of the MineVisit Here
Exploration and Evaluation ExpendituresVisit Here
Farm-out Arrangements in the Exploration and Evaluation PhaseVisit Here
Flow-Through SharesVisit Here
Functional CurrencyVisit Here
Identifying LeviesVisit Here
Impairment of Exploration and Evaluation AssetsVisit Here
Recognition of Corporate Social Responsibility Provisions under IAS 37Visit Here
Redevelopment of an Inactive Mine by an Existing OwnerVisit 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.