Which of the following costs is not an element of cost of exploration for and evaluation of mineral assets in AASB 6 Exploration for and Evaluation of Mineral Resources?
A) costs of acquiring leases or other rights of tenure in the area of interest that are included in the cost of the exploration and evaluation asset if they are acquired as part of the exploration for and evaluation of mineral resources
B) charges for depreciation of equipment used in exploration and evaluation activities
C) general and administrative costs directly attributed to the operational activities in the area of interest to which the exploration and evaluation asset relates
D) salaries and other expenses of general management allocated by head office to the area of interest

Question

Quizplus · Accepted Answer

Salaries and other expenses of general management allocated by head office to the area of interest are not considered an element of the cost of exploration for and evaluation of mineral assets in AASB 6, as they are not directly attributable to the exploration and evaluation activities.

Which of the Following Costs Is Not an Element of Cost