Miner Ltd is a miner of iron ore. Miner Ltd is currently undertaking exploration and evaluation (E&E) activities in a number of areas of interest (AOls). Costs incurred in which area(s) of interest are able to be capitalised at 30 June 20x6 in Miner Ltd's financial statements? SELECT ALL CORRECT RESPONSES Select one or more:

a. In May 20X6 Miner Ltd commenced initial exploration activities on the Dieman Aol after obtaining regulatory approval to mine in this area. To date some deposits of iron ore have been found but geologists are yet to determine the quality and quantity of the deposits.

b. In 20X4 Miner Ltd discovered iron ore at the Tasman AOI. Geologists estimate that 400 million tonnes of iron ore are located at the AOI. A minimum benchmark of 100 million tonnes is required for Miner Ltd to proceed with the development. At 30 June 20X6 Miner Ltd is waiting on the issue of a mining permit. They plan on commencing development and construction activities on AOI A as soon as the permit is issued.

c. In 20X5 Miner Ltd acquired the Van AOI. Exploration and evaluation activities have indicated that this AOI has significant deposits of economically recoverable reserves of iron ore. The area is very remote and Miner Ltd would need to commit significant funds towards development and construction prior to commencing mining activities.

d.In 20x3 Miner Ltd acquired the Abel AOI. Exploration and evaluation activities have indicated that this AOI has significant deposits of economically recoverable reserves of iron ore. In January 20X6 the government enacted legislation preventing development in the area where the Abel Aol is located due to environmental concerns.

Answer rating: 100% (QA)

Management needs to develop a consistent and transparent accounting policy that is applied through t... View the full answer