Methods of Costing under IFRS 6

January 2017 | 6 pages | ID: M1995724AEFEN
Sadia Saeed

Abstracts

The report offers an account of entire process in which the upstream costs and the methods available for their accounting are taken into account. This part of process of mining incorporates, finding the raw materials and extracting them and this comprise of all elements of costs that any extraction or mining company has to bear in the procedure poor to production. In order to determine the method to cost these elements in up-stream process IFRS-6 gives valuable guidelines. It is the financial reporting standard that is pertinent to mining and extraction industry. All expenditures that take place in the process of evaluating and exploring the resources underground are termed as “upstream” costs (Qureshi, 2015). In case of mining sector this is considerable part of cost as a lot f expenses incur prior to the actual process of production. Cont… (1200 words of this report)

Contents

Methods of Costing under IFRS 6
Upstream cost accounting methods
Accounting Policies
Income and expenses
Costing (direct and indirect)
Depreciation
Borrowing
Cost of start up
Revenues pre-production
Production
Impairment
Disclosure
References