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Under the successful Efforts approach, in general only those costs that lead directly to the discovery, acquisition, or development of specific, discrete mineral reserves are

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Under the successful Efforts approach, in general only those costs that lead directly to the discovery, acquisition, or development of specific, discrete mineral reserves are capitalized. T/F The range of types of expenditure that are permitted to be capitalized as E&E assets are broad, including items such as depreciation of property, plant and equipment, and consumables, with (depending on the unit of account used for an E&E area) even costs of failed test results being eligible to be capitalized. T/F For those entities in jurisdictions that transition to IFRS, IFRS 6 permits the continued application of many pre-IFRS accounting policies in respect of E&E expenditure, and permits a variety of approaches to the extent to which future E&E expenditure is capitalized. Similarly, an entity commencing E&E activities that is established in a jurisdiction that has already adopted IFRS has a choice of capitalizing or expensing each type of E&E expenditure. T/F

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