Changes in facts and circumstances

Exploration for and Evaluation of Mineral Resources

18/06/202105/05/2019 by 75385885

Exploration for and Evaluation of Mineral Resources – overview (Source https://www.bdo.global/en-gb/services/audit-assurance/ifrs/ifrs-at-a-glance) The scope of IFRS 6 Exploration for and Evaluation of Mineral Resources is limited to the recognition, measurement and disclosure of expenditure incurred in the phase covering the Exploration for and Evaluation (Exploration and evaluation) of mineral resources. Although the term used is ‘mineral resources’, the definitions in IFRS 6 clarify that this extends to cover minerals, oil, natural gas and other similar non-regenerative resources meaning that it applies across the extractives industry sector. The limitation of scope to cover the exploration and evaluation phase means that IFRS 6 does not apply to expenditure incurred: In the previous prospecting phase; In all phases after the Exploration and evaluation phase has … Read more

IFRS 13 The best Fair value fundamentals

05/12/202024/03/2020 by 75385885

IFRS 13 The best Fair value fundamentals discusses the key concepts in the fair value standards, including the definition of fair value, inputs to fair value measurements, and the fair value hierarchy. It also addresses certain issues associated with the application of these concepts. 1 Definition of fair value The fair value standard defines fair value: IFRS 13 9 The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under the fair value standard, fair value is based on the exit price (the price that would be received to sell an asset or paid to transfer a liability), not the transaction price or … Read more

Uncertainty in income tax measurement

04/12/201925/06/2019 by 75385885

Uncertainty in income tax measurement – In assessing whether uncertainty over income tax treatments exists, an entity may consider a number of indicators including, but not limited to, the following: Ambiguity in the drafting of relevant tax laws and related guidelines (such as ordinances, circulars and letters) and their interpretations Income tax practices that are generally applied by the taxation authorities in specific jurisdictions and situations Results of past examinations by taxation authorities on related issues Rulings and decisions from courts or other relevant authorities in addressing matters with a similar fact pattern Tax memoranda prepared by qualified in-house or external tax advisors The quality of available documentation to support a particular income tax treatment In defining ‘uncertainty’, the entity … Read more

Identify a controlling party

30/11/201903/07/2019 by 75385885

Identify a controlling party – Like the analysis for non-structured entities, an investor ‘controls’ an investee if the investor is exposed to (has rights to) variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee. Control involves power, exposure to variability of returns and a link between the two. [IFRS 10 6 – 7, IFRS 10 Definitions, IFRS 10 B2] As for non-structured entities, a structured entity is not expected to have more than one controlling party at any given time. If no single investor, or group of investors acting collectively, has control, then no controlling party is identified and the entity is not consolidated. [IFRS 10 9] … Read more