Advance Accounting Exploration for and Evaluation for Mineral Resource

Question: Explain the manner in which AASB 6, with respect to exploration and evaluation expenditures, elaborates on the definition and recognition criteria for assets specified in the AASB Framework for the Preparation and Presentation of Financial Statements (the Framework).?To what extent are the AASB 6 rules for exploration and evaluation expenditures consistent with the asset definition and recognition criteria specified in the Framework? Are there any inconsistencies and, if so, why do you think these arise? Answer: ASB 6 Exploration for and Assessment of Mineral Resources as amended includes IFRS 6 Exploration for and Evaluation of Mineral Resources as delivered and corrected by the Global Accounting Standards Board . The objective of this standard is to report for the examination for and assessment of inorganic resources. The Standard needs: (a) partial developments to current accounting performs for examination and assessment expenses (b) discoveries that recognize and clarify the sums in the entitys commercial statements rising from the examination for and assessment of mineral resources and also it helps the individuals to know about the future cash flow. Compliance includes all businesses involved within the examination for and assessment of mineral assets, such as extracting companies, mining companies, which also includes the Governments and the not so profit companies or entities. The assists which are explored should be actually measured at cost. Expenses which relates to the growth of mineral properties shall not be recognised as examination and assessment assets. The e evaluation of the mineral resources would actually be then classified in to the tangible or intangible assests accordingly (Australian accounting standard board, 2017). Conceptual frameorkis an diagnostic tool with several differences and backgrounds It is existing to develop ideas. Financial statemets are prepared according to the conceptual framework Where a framework document has been corrected and a accumulated form has been prepared. This amassed Framework applies to yearly reporting periods commencement on or after 1 July 2014. Framework is not a standard and it does not define standards for any particular type of issue. We also see that the Framework can be revised from time to time accordingly and it also deals with the dimension of the basics from which financial statements are built (Australian Government, 2017). Framework is made so that it can assist the AASB in the development of the Australian standards It can help the auditor to form a view or an opinion that the financial statements are in accordance with the applicable standards assist the AASB in endorsing harmonisation of guidelines, accounting values and measures relating to the performance of financial declarations. Provide information those who want to work in the area of AASB and help them about the formulation of It also helps the indiviuals or users to understand the information which is contained in the statements and which is prepared according the guidelines issued by the Australian Board. It can help the auditor to form a view or an opinion that the financial statements are in accordance with the applicable standards The AASB distinguishes that in a limited number of cases there may be a clash between the Framework and an Australian Accounting Standard. In the cases of conflict, the necessities of the Australian Accounting Standard succeed over those of the Framework. AASb will therefore will be directed by the Agenda or the Framework. The similarities between AASB 6 and the framework are : Both ASSB 6and the conceptual framework have the ultimate motive to make the financial statement showing true and fair view. AASB6 and the framework is that they are revised time to time with the situations and the prevailing conditions The difference between the Framework and ASSB6 are AASB 6 is an Accounting standard issued by the respective Board where Conceptual framework is not an Accounting standard ASB 6 deals with the Exploration for and Assessment of Mineral Resources as amended includes IFRS 6 Exploration for and Evaluation of Mineral Resources as delivered and corrected by the Global Accounting Standards Board whereas the Conceptual framework is the framework which is used to prepare the financial statements more effectively and efficiently. The purpose of the framework is to support users of monetary statements in understanding the material contained in financial declarations prepared in conformism with Australian Accounting Values or Standards whereas AASB 6 is an accounting standard which has the objective to some type of developments to current accounting practices for examination and assessment expenditures. The main objective of the Framework is to make the standards undertstanble to all the parties. Refrences Compiled accounting standard (2017).Exploration for and evaluation for mineral resources [online] Available at: https://www.amec.org.au/download/0710LetterTreasuryExplorationdeductions_plusAppendices.pdf [Accessed 9th April. 2017].[1] Australian accounting standard board (2017).Framework for the preparation and presentation of financial statements [online] Available athttps://membershandbook.charteredaccountants.com.au/static/icamh/images/141/COMM.AAAS~Framework_11_09.pdf [Accessed 9th April. 2017].[2] Australian accounting standard board(2017).Conceptual framework. [online] Available at: https://www.aasb.gov.au/pronouncements/conceptual-framework.aspx [Accessed 9th April. 2017].[3] Australian Government(2017).Conceptual framework for financial reporting [online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/ACCED264_06-15.pdf [Accessed 9th April. 2017].[4]