If an area-of interest is abandoned,which of the following actions is consistent with AASB 6 "Exploration for and Evaluation of Mineral Resources"?
A) Write-off carrying amount of exploration and evaluation assets and recognize an impairment loss;
B) Reclassify carrying amount of exploration and evaluation assets to another other area-of-interest;
C) Re-instatement of previously written off exploration and evaluation assets is not permitted.
D) Machinery that can be dismantled and used on another area of interest should not be expensed.
E) None of the given answers.

Question

Quizplus · Accepted Answer

According to AASB 6, if an area-of-interest is abandoned, the carrying amount of exploration and evaluation assets should be written-off and an impairment loss should be recognized. This is because there is no longer any future economic benefit expected to be derived from these assets.

If an Area-Of Interest Is Abandoned,which of the Following Actions