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)Â 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
Accounting for Share Purchase Warrants Issued
Asset Acquisition Versus Business Combination
Background on Different Phases of Activities of a Mining Entity
Capitalization of Borrowing Costs
Commencement of Commercial Production
Commodity Prices and ImpairmentÂ
Decommissioning Liabilities in Business CombinationÂ
Depletion of a Mine in the Production Phase: Useful Life of the Mine
Exploration and Evaluation Expenditures
Farm-out Arrangements in the Exploration and Evaluation Phase
Impairment of Exploration and Evaluation Assets
Recognition of Corporate Social Responsibility Provisions under IAS 37
Redevelopment of an Inactive Mine by an Existing Owner
A complete list of the Mining Viewpoints can be found here.Â
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.
To contact someone from our Mining & Exploration team click here.Â
