Leases to explore, or: keep digging!

Here’s another issue recently discussed by CPA Canada’s IFRS Discussion Group In Canada, the government generally owns all minerals and rights over those minerals beneath the ground, while individuals and entities own freehold ownership interests over the surface of the land. In mining and oil and gas industries, an entity may acquire from the government…

Identifying functional currency for development-stage entities – a matter of judgment!, part two

Continuing with some complexities of identifying an entity’s functional currency under IFRS We concluded last time by considering a Canadian mining entity that identities the South African rand as the functional currency of an exploration-stage foreign subsidiary, based solely on its current expenditures. As the discussion of CPA Canada’s IFRS Discussion Group indicates, it may well have to…

Identifying functional currency for development-stage entities – a matter of judgment!, part one

A common question relating to identifying an entity’s functional currency under IFRS, on which one can find plenty of diversity in practice. Many Canadian entities, particularly in the resource industries (and let’s assume for this purpose with Canadian dollar functional currencies), have exploration-stage foreign subsidiaries. At the current time, those subsidiaries are incurring the bulk…

Extractive industries – what to expect?

Will the “temporary exemption” allowed by IFRS 6 ever actually be lifted? The choice allowed by IFRS 6 in the area of exploration and evaluation expenses is well-known to those involved in the extractive industries; or, put another way, to any Canadian practitioner who works with smaller entities. Many Canadian entities used the transition to…