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Unformatted text preview: ations need to be prepared. We recommend KPMG's publication The Application of IFRS: Oil and Gas for greater detail on the issues raised in this document, and examples of disclosures from existing IFRS oil and gas companies. 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. 4 Impact of IFRS: Oil and Gas Discussion Paper Extractive Activities
IFRS 6 Exploration for and Evaluation of Mineral Resources was intended only as a temporary measure. The future of accounting for E&E expenditure is not yet clear. The International Accounting Standards Board (IASB) issued a discussion paper Extractive Activities in April 2010. The discussion paper outlines a revised framework for accounting for extractive activities. A decision on whether the Extractive Activities project should be added to the IASB's active agenda is expected when the IASB considers responses to its Agenda Consultation 2011, which are due by 30 November 2011. If the IASB adds a project on extractive activities to its active agenda, then it will take the discussion paper and the 141 comment letters received as the basis for its initial deliberations. The discussion paper and responses are discussed throughout this section of the publication. It is clear that there is currently variation in accounting and opinions between companies in the extractive industries, and the discussion paper generated significant interest in the oil and gas sector. Respondents were supportive of a project to address the accounting for extractive activities, although many respondents did not agree with the project team's specific proposals. The responses to the discussion paper highlight the range of opinions on the future of accounting for oil and gas operations under IFRS. 2011 KPMG International Co...
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