Q1

Which of the following costs are considered as the recoverable amount of an impaired asset?

1. Its fair value at the date of impairment, net of any costs to sell the asset.
2. The present value of future net cash flows discounted at the applicable discount rate.

Q2

Which of the following statements is/are true regarding subsequent measurement of exploration and evaluation assets?

1. Classification as exploration and evaluation assets ceases when the extraction project is no longer technically feasible nor commercially viable.
2. Subsequently, exploration and evaluation assets measured using the revaluation model shall be accounted in accordance with PAS 16, Property, Plant and Equipment, regardless of the classification.
3. Before exploration and evaluation assets can be reclassified, it is necessary for an entity to assess the assets for impairment, and whether applicable, recognize an impairment loss.