AASB 6 defines economically recoverable reserves to be:
A) the only source of revenue for firms in the extractive industries.
B) the quantity of product that can be extracted before the firm makes a loss.
C) the quantity of product that can be extracted, processed and sold at a profit based on past economic conditions.
D) the estimated quantity of the product in the area of interest that can be expected to be profitably extracted and sold under current and foreseeable economic conditions.

Question

Quizplus · Accepted Answer

AASB 6 defines economically recoverable reserves as the estimated quantity of the product in the area of interest that can be expected to be profitably extracted and sold under current and foreseeable economic conditions. This means that it takes into account not just past economic conditions but also future ones, ensuring that the reserve is profitable to extract and sell.

AASB 6 Defines Economically Recoverable Reserves to Be