Exploration for and evaluation of mineral resources isthe search for mineral resources before the entity has obtained legal rights to explore in a specific area.the search for mineral resources after the entity has obtained legal rights to explore in a specific area.the search for mineral resources before the entity has obtained legal rights to explore in a specific area up to the date when mineral resources are actually confirmed to exist in the area.the search for mineral resources after the entity has obtained legal rights to explore in a specific area up to the date when commercial operations begin. According to PFRS 6 Exploration for and Evaluation of Mineral Resources, an entity may change its accounting policies for exploration and evaluation expenditures ifthe change makes the financial statements more relevant and more reliable.the PFRSs do not prohibit the changethe change makes the financial statements more relevant and no less reliable, or more reliable and no less relevant.a or b After recognition, exploration and evaluation assets are accounted for under thecost model revaluation model fair value modela or b Entity A receives land from the government conditioned that the land will only be used in Entity A’s primary business activities and should never be sold. If in case, Entity A decidesnot to use the land in its primary business activities, it shall return the land to the government. Which of the following standards is least likely to be relevant in accounting for the land? a. PAS 2PAS 16PAS 20All of these are relevant

"Since you have asked multiple question we will solve the first question for you. If you want any…

Answered: Exploration for and evaluation of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Exploration for and evaluation of mineral resources is
1. the search for mineral resources before the entity has obtained legal rights to explore in a specific area.
2. the search for mineral resources after the entity has obtained legal rights to explore in a specific area.
3. the search for mineral resources before the entity has obtained legal rights to explore in a specific area up to the date when mineral resources are actually confirmed to exist in the area.
4. the search for mineral resources after the entity has obtained legal rights to explore in a specific area up to the date when commercial operations begin.

According to PFRS 6 Exploration for and Evaluation of Mineral Resources, an entity may change its accounting policies for exploration and evaluation expenditures if
1. the change makes the financial statements more relevant and more reliable.
2. the PFRSs do not prohibit the change
3. the change makes the financial statements more relevant and no less reliable, or more reliable and no less relevant.
4. a or b

After recognition, exploration and evaluation assets are accounted for under the
1. cost model
2. revaluation model
3. fair value model
4. a or b

Entity A receives land from the government conditioned that the land will only be used in Entity A’s primary business activities and should never be sold. If in case, Entity A decides

not to use the land in its primary business activities, it shall return the land to the government. Which of the following standards is least likely to be relevant in accounting for the land? a. PAS 2

PAS 16
PAS 20
All of these are relevant

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions