quiz-2-answersdocdocx.docx - 1. Exploration and evaluation...

1. Exploration and evaluation assets are initially measured at
a. cost.
b. revalued amount.
c. fair value.
d. a or b
2. Exploration and evaluation assets are exploration and evaluation expenditures recognized as
3. Information needed to compute a depletion charge per unit includes the
4. Which of the following expenditures would never qualify as an exploration and evaluation asset?
5. Does PFRS 6 require an entity to recognize exploration and evaluation expenditure as an asset?
a. No, but only to the extent such expenditure is recoverable in future periods.
b. Yes, but only to the extent the technical feasibility and commercial viability of extracting the associated mineral
resource have been demonstrated.
c. Yes, but only to the extent required by the entity’s accounting policy for recognizing exploration and evaluation
asset.
d. No, such expenditure is always expensed in profit or loss as incurred
6. Exploration and evaluation expenditures are incurred