Energy & Mining International - Fall 2015 - 14


+

EXPLORATION COSTS | COLUMNS

Final
Frontiers?
Is it time for juniors to cease capitalization of exploration costs?
BY BRYNDON KYDD

14 emi-magazine.com

Fall 2015

W

hen Canada began
seriously considering adopting International Financial
Reporting Standards
(IFRS), the management of many junior exploration companies feared the
loss of their exploration and evaluation (E&E) assets on the statement of
financial position; many stakeholders
relied on this figure as an indicator of a
company's value. Then, IFRS 6, Exploration for and Evaluation of Mineral
Resources, was introduced in December 2004, allowing for the capitalization of E&E costs, allaying companies'
fears. But now we're well into 2015,
and many juniors are struggling in a
lagging economy. These companies
now face tough decisions on their E&E
assets and risk incurring impairment
charges - the impact of which is accentuated by their prior choice to capitalize their E&E expenditures.
Mining companies have always had
the option to either capitalize or expense E&E costs under IFRS. In some
cases, adopting an accounting policy
to capitalize property costs only once
an economically recoverable reserve is
identified could have significant advantages. But our proprietary research has
found that a number of mining companies are moving toward expensing
E&E costs as incurred - more than 15
Canadian reporting issuers cite an accounting policy change toward expensing E&E costs in their annual financial
statements filed since January 1, 2014,
with some disclosing that this policy is
"more relevant and reliable."
Is now the time for junior exploration companies to reconsider the
common practice of capitalizing E&E
costs? Here are a few advantages to
making the switch to expensing your
company's E&E costs:


http://www.emi-magazine.com

Table of Contents for the Digital Edition of Energy & Mining International - Fall 2015

Contents
Energy & Mining International - Fall 2015 - Cover1
Energy & Mining International - Fall 2015 - Cover2
Energy & Mining International - Fall 2015 - 1
Energy & Mining International - Fall 2015 - 2
Energy & Mining International - Fall 2015 - Contents
Energy & Mining International - Fall 2015 - 4
Energy & Mining International - Fall 2015 - 5
Energy & Mining International - Fall 2015 - 6
Energy & Mining International - Fall 2015 - 7
Energy & Mining International - Fall 2015 - 8
Energy & Mining International - Fall 2015 - 9
Energy & Mining International - Fall 2015 - 10
Energy & Mining International - Fall 2015 - 11
Energy & Mining International - Fall 2015 - 12
Energy & Mining International - Fall 2015 - 13
Energy & Mining International - Fall 2015 - 14
Energy & Mining International - Fall 2015 - 15
Energy & Mining International - Fall 2015 - 16
Energy & Mining International - Fall 2015 - 17
Energy & Mining International - Fall 2015 - 18
Energy & Mining International - Fall 2015 - 19
Energy & Mining International - Fall 2015 - 20
Energy & Mining International - Fall 2015 - 21
Energy & Mining International - Fall 2015 - 22
Energy & Mining International - Fall 2015 - 23
Energy & Mining International - Fall 2015 - 24
Energy & Mining International - Fall 2015 - 25
Energy & Mining International - Fall 2015 - 26
Energy & Mining International - Fall 2015 - 27
Energy & Mining International - Fall 2015 - 28
Energy & Mining International - Fall 2015 - 29
Energy & Mining International - Fall 2015 - 30
Energy & Mining International - Fall 2015 - 31
Energy & Mining International - Fall 2015 - 32
Energy & Mining International - Fall 2015 - 33
Energy & Mining International - Fall 2015 - 34
Energy & Mining International - Fall 2015 - 35
Energy & Mining International - Fall 2015 - 36
Energy & Mining International - Fall 2015 - 37
Energy & Mining International - Fall 2015 - 38
Energy & Mining International - Fall 2015 - 39
Energy & Mining International - Fall 2015 - 40
Energy & Mining International - Fall 2015 - 41
Energy & Mining International - Fall 2015 - 42
Energy & Mining International - Fall 2015 - 43
Energy & Mining International - Fall 2015 - 44
Energy & Mining International - Fall 2015 - 45
Energy & Mining International - Fall 2015 - 46
Energy & Mining International - Fall 2015 - 47
Energy & Mining International - Fall 2015 - 48
Energy & Mining International - Fall 2015 - 49
Energy & Mining International - Fall 2015 - 50
Energy & Mining International - Fall 2015 - 51
Energy & Mining International - Fall 2015 - 52
Energy & Mining International - Fall 2015 - 53
Energy & Mining International - Fall 2015 - 54
Energy & Mining International - Fall 2015 - 55
Energy & Mining International - Fall 2015 - 56
Energy & Mining International - Fall 2015 - 57
Energy & Mining International - Fall 2015 - 58
Energy & Mining International - Fall 2015 - 59
Energy & Mining International - Fall 2015 - 60
Energy & Mining International - Fall 2015 - 61
Energy & Mining International - Fall 2015 - 62
Energy & Mining International - Fall 2015 - 63
Energy & Mining International - Fall 2015 - 64
Energy & Mining International - Fall 2015 - 65
Energy & Mining International - Fall 2015 - 66
Energy & Mining International - Fall 2015 - 67
Energy & Mining International - Fall 2015 - 68
Energy & Mining International - Fall 2015 - 69
Energy & Mining International - Fall 2015 - 70
Energy & Mining International - Fall 2015 - 71
Energy & Mining International - Fall 2015 - 72
Energy & Mining International - Fall 2015 - 73
Energy & Mining International - Fall 2015 - 74
Energy & Mining International - Fall 2015 - 75
Energy & Mining International - Fall 2015 - 76
Energy & Mining International - Fall 2015 - 77
Energy & Mining International - Fall 2015 - 78
Energy & Mining International - Fall 2015 - 79
Energy & Mining International - Fall 2015 - 80
Energy & Mining International - Fall 2015 - 81
Energy & Mining International - Fall 2015 - 82
Energy & Mining International - Fall 2015 - 83
Energy & Mining International - Fall 2015 - 84
Energy & Mining International - Fall 2015 - 85
Energy & Mining International - Fall 2015 - 86
Energy & Mining International - Fall 2015 - 87
Energy & Mining International - Fall 2015 - 88
Energy & Mining International - Fall 2015 - 89
Energy & Mining International - Fall 2015 - 90
Energy & Mining International - Fall 2015 - 91
Energy & Mining International - Fall 2015 - 92
Energy & Mining International - Fall 2015 - 93
Energy & Mining International - Fall 2015 - 94
Energy & Mining International - Fall 2015 - 95
Energy & Mining International - Fall 2015 - 96
Energy & Mining International - Fall 2015 - 97
Energy & Mining International - Fall 2015 - 98
Energy & Mining International - Fall 2015 - 99
Energy & Mining International - Fall 2015 - 100
Energy & Mining International - Fall 2015 - 101
Energy & Mining International - Fall 2015 - 102
Energy & Mining International - Fall 2015 - 103
Energy & Mining International - Fall 2015 - 104
Energy & Mining International - Fall 2015 - 105
Energy & Mining International - Fall 2015 - 106
Energy & Mining International - Fall 2015 - 107
Energy & Mining International - Fall 2015 - 108
Energy & Mining International - Fall 2015 - 109
Energy & Mining International - Fall 2015 - 110
Energy & Mining International - Fall 2015 - 111
Energy & Mining International - Fall 2015 - 112
Energy & Mining International - Fall 2015 - 113
Energy & Mining International - Fall 2015 - 114
Energy & Mining International - Fall 2015 - 115
Energy & Mining International - Fall 2015 - 116
Energy & Mining International - Fall 2015 - 117
Energy & Mining International - Fall 2015 - 118
Energy & Mining International - Fall 2015 - 119
Energy & Mining International - Fall 2015 - 120
Energy & Mining International - Fall 2015 - 121
Energy & Mining International - Fall 2015 - 122
Energy & Mining International - Fall 2015 - 123
Energy & Mining International - Fall 2015 - 124
Energy & Mining International - Fall 2015 - 125
Energy & Mining International - Fall 2015 - 126
Energy & Mining International - Fall 2015 - 127
Energy & Mining International - Fall 2015 - 128
Energy & Mining International - Fall 2015 - Cover3
Energy & Mining International - Fall 2015 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3ab
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2016fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013_summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fallwinter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2011fall
http://www.nxtbook.com/nxtbooks/businessmedia/emi_20110607
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011summer
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011spring
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010fall
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010summer
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010spring
http://www.nxtbook.com/nxtbooks/schofield/ep_2009winter
http://www.nxtbook.com/nxtbooks/schofield/ep_2009fall
http://www.nxtbookMEDIA.com