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) Any reserves that can be extracted and will provide a future economic benefit to the entity.
E) 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 only the reserves that can provide a future economic benefit to the entity, based on current and foreseeable market conditions, are considered economically recoverable.

AASB 6 Defines Economically Recoverable Reserves to Be