Viewpoints: Impairment of exploration and evaluation assets (Mining)

Learn how the modifications in International Financial Reporting Standard (IFRS) 6 Exploration for and Evaluation of Mineral Resources affect the assessment of exploration and evaluation assets for impairment.

A large yellow dump truck and an excavator work in an open pit mine.

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If your company is involved in a mining project, you may be wondering: how do modifications in IFRS 6 affect the way we assess E&E assets for impairment? Viewpoints: Applying IFRS in the Mining Industry — Impairment of Exploration and Evaluation Assets provides views on how such modifications affect impairment testing of E&E assets.

Prepared by Chartered Professional Accountants of Canada (CPA Canada) and the Prospectors and Developers Association of Canada, this useful resource for junior mining companies features information on:

  • the interaction between IAS 36 Impairment of Assets and IFRS 6
  • how IFRS 6 modifies the requirements of IAS 36
  • circumstances under which an entity should test E&E assets for impairment
  • the interaction between market capitalization and the carrying amount of an entity’s net assets
  • the level at which impairment testing should be conducted