Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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There are diverse accounting practices among companies in the worldwide extractive industry. The IASB has commissioned a research project to review accounting practices for extractive activities. A Discussion Paper was published in April 2010 and the IASB will decide whether to add this project to its active agenda. In the view of the IASB, however, an entity must comply with all of the International Standards in order to make an unreserved statement of compliance with IFRS.

To provide interim guidance and a transition for entities in the extractive industry that are adopting IFRS, the IASB issued IFRS 6 Exploration for and Evaluation of Mineral Resources, in December 2004. The Standard applies to expenditures incurred in connection with the exploration and evaluation of mineral resources and is effective from 1 January 2006, with earlier application encouraged.

This two-day course summarizes the accounting and disclosure requirements of IFRS 6 and discusses the current status of the IASB’s work on accounting for extractive activities. In addition, key Standards that affect the industry are given in-depth coverage, including IFRS rules on impairment of assets, recognition and measurement of tangible and intangible assets, revaluations of certain qualifying assets, and hedge accounting. An overview of US/Canadian GAAP relevant to extractive industries is also presented.

The program answers questions such as:

• What are the accounting and disclosure requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources?

• How does the diversity in accounting practices in the extractive industry affect financial reporting and what is the IASB’s response?

• What are the critical compliance issues relating to hedge accounting?

• Where can relevant accounting guidance for the extractive industry be found under both IFRS and US/Canadian GAAP?

• What options are available for valuing tangible assets?

• How are the recognition and measurement rules for impairment applied?

Prerequisites

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Knowledge of basic accounting for assets.
No advance preparation is required for this course.

Course Level

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Intermediate

Topics

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• IFRS 6 Exploration for and Evaluation of Mineral Resources
• Cost elements of exploration and evaluation assets
• Initial and subsequent measurement of assets
• Changes in accounting policies
• Tangible vs. intangible classification of assets
• Impairment
• Disclosures
• Transitional provisions
• IAS 16 Property, Plant and Equipment
• Provisions for Removal and Restoration Costs
• IAS 36 Impairment of Assets
• IAS 38 Intangible Assets
• Hedge Accounting (IAS 39 Financial Instruments: Recognition and Measurement)
• Depreciation and Amortization Rules
• Overview of US/Canadian GAAP for Extractive Industries including SEC’s Oil & Gas Modernization Act
• Update on the IASB’s Discussion Paper on extractive activities

Course Benefits

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• Understand and apply the accounting and disclosure requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources
• Appreciate the diversity in accounting practices in the extractive industry and the IASB’s project to review those practices
• Apply hedge accounting
• Recognize the relevant accounting guidance for the extractive industry under US/Canadian GAAP
• Understand the options available for valuing tangible assets
• Comprehend the complex rules on evaluating assets for impairment
• Complete a smooth transition to IFRS

Teaching Method

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• Live group instruction with interactive participation encouraged
• Explanation and demonstration of the accounting rules relating to expenditures for the exploration for and evaluation of mineral resources
• Presentation of the rules for impairment of assets, with practical examples
• Explanation and demonstration of the measurement and revaluation option for tangible and intangible assets
• Discussion of US/Canadian GAAP relevant to the extractive industry
• Explanation and pertinent examples of hedge accounting
• Presentation and discussion of model financial statements and disclosures
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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16 hours

Venue

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All of our Las Vegas seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.