An analysis of the accounting practices of junior exploration companies in South Africa
IFRS 6, Exploration for and evaluation of mineral resources, allows junior exploration companies to develop their own accounting policies with regard to exploration and evaluation expenditure. This will result, as indicated by the research problem, in inconsistent accounting practices among differen...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AOSIS
2014-10-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/233 |
| _version_ | 1818383034137706496 |
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| author | Joline Sturdy Christo Cronjé |
| author_facet | Joline Sturdy Christo Cronjé |
| author_sort | Joline Sturdy |
| collection | DOAJ |
| description | IFRS 6, Exploration for and evaluation of mineral resources, allows junior exploration companies to develop their own accounting policies with regard to exploration and evaluation expenditure. This will result, as indicated by the research problem, in inconsistent accounting practices among different companies. The objective of this article is to identify the various accounting treatments of exploration expenditure and to develop recommendations for consistent application of accounting practices. Relevant literature is critically analysed and the judgement sampling method is used to select junior exploration companies to participate in a self-administered survey to identify the various accounting treatments of exploration and evaluation expenditure by junior exploration companies. The findings of this study show that, despite the time and resources expended by the International Accounting Standards Board (IASB) in the extractive activities project, nothing has changed in the last 40 years. Progress in the standardisation of accounting for exploration and evaluation expenditure can be made if the exemptions included in IFRS 6 are removed or only the successful-efforts method incorporated into IFRS 6. |
| first_indexed | 2024-12-14T02:59:57Z |
| format | Article |
| id | doaj.art-eb15364c0ef24fefa8a02d6c671fffaf |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-12-14T02:59:57Z |
| publishDate | 2014-10-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-eb15364c0ef24fefa8a02d6c671fffaf2022-12-21T23:19:32ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032014-10-017368169610.4102/jef.v7i3.233179An analysis of the accounting practices of junior exploration companies in South AfricaJoline Sturdy0Christo Cronjé1University of South AfricaUniversity of South AfricaIFRS 6, Exploration for and evaluation of mineral resources, allows junior exploration companies to develop their own accounting policies with regard to exploration and evaluation expenditure. This will result, as indicated by the research problem, in inconsistent accounting practices among different companies. The objective of this article is to identify the various accounting treatments of exploration expenditure and to develop recommendations for consistent application of accounting practices. Relevant literature is critically analysed and the judgement sampling method is used to select junior exploration companies to participate in a self-administered survey to identify the various accounting treatments of exploration and evaluation expenditure by junior exploration companies. The findings of this study show that, despite the time and resources expended by the International Accounting Standards Board (IASB) in the extractive activities project, nothing has changed in the last 40 years. Progress in the standardisation of accounting for exploration and evaluation expenditure can be made if the exemptions included in IFRS 6 are removed or only the successful-efforts method incorporated into IFRS 6.https://jefjournal.org.za/index.php/jef/article/view/233Junior exploration companiespre-exploration expenditureexploration expenditureexploration and evaluation assetsaccounting policiesaccounting practicesIFRS 6 |
| spellingShingle | Joline Sturdy Christo Cronjé An analysis of the accounting practices of junior exploration companies in South Africa Journal of Economic and Financial Sciences Junior exploration companies pre-exploration expenditure exploration expenditure exploration and evaluation assets accounting policies accounting practices IFRS 6 |
| title | An analysis of the accounting practices of junior exploration companies in South Africa |
| title_full | An analysis of the accounting practices of junior exploration companies in South Africa |
| title_fullStr | An analysis of the accounting practices of junior exploration companies in South Africa |
| title_full_unstemmed | An analysis of the accounting practices of junior exploration companies in South Africa |
| title_short | An analysis of the accounting practices of junior exploration companies in South Africa |
| title_sort | analysis of the accounting practices of junior exploration companies in south africa |
| topic | Junior exploration companies pre-exploration expenditure exploration expenditure exploration and evaluation assets accounting policies accounting practices IFRS 6 |
| url | https://jefjournal.org.za/index.php/jef/article/view/233 |
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