Accounting for the acquisition of equipment to be used in the extraction of mineral resources is covered by:

Question

Quizplus · Accepted Answer

AASB 116 provides guidance on accounting for property, plant, and equipment, including the initial recognition, measurement, and subsequent accounting for depreciation/amortization, impairment, and disposal. As the equipment is used in the extraction of mineral resources, it falls under the category of property, plant, and equipment. AASB 6 is applicable for accounting for exploration and evaluation activities, while AASB 108 and AASB 138 are not relevant for this specific scenario.

Accounting for the Acquisition of Equipment to Be Used in the Extraction