When deciding,under the area of interest method,to what extent costs should be written off or carried forward AASB 6 requires that:
A) all activities should be considered to best reflect the position of the firm.
B) each area of interest as delimited by the firm to be considered separately.
C) exploration and evaluation costs must be carried forward.
D) each area of interest as delimited by the firm to be considered separately and exploration and evaluation costs must be carried forward.

Question

Quizplus · Accepted Answer

AASB 6 allows for flexibility in accounting for exploration and evaluation expenditures, but it requires that each area of interest, as defined by the firm, be considered separately to determine whether costs should be written off or carried forward. This approach allows firms to apply judgment based on the specifics of each area, rather than mandating a one-size-fits-all rule.

When Deciding,under the Area of Interest Method,to What Extent Costs