Unsuccessful E&E expenditures may be capitalized.
A) Always, as prescribed in IFRS 6.
B) When all successful expenditures are also capitalized.
C) When efforts to avoid similar unsuccessful efforts are disclosed in detail.
D) None of the above

Question

Quizplus · Accepted Answer

Unsuccessful Exploration & Evaluation (E&E) expenditures are not automatically capitalized under IFRS 6. The standard allows for flexibility in accounting policies, but unsuccessful expenditures are typically expensed as they are incurred unless they are part of the overall cost of discovering commercially viable resources.

Unsuccessful E&E Expenditures May Be Capitalized