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) The costs of acquiring leases or other rights of tenure in the area of interest 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
E) None of the given answers.

Question

Quizplus · Accepted Answer

Salaries and other expenses of general management allocated by head office to the area of interest are typically considered overhead and not directly attributable to exploration and evaluation activities, thus not included in the cost of exploration and evaluation assets under AASB 6.

Which of the Following Costs Is Not an Element of Cost