PSAK 64

Exploration and Evaluation Mineral Resources

Objective

The purpose of this statement is to establish financial reporting for exploration and resource evaluation minerals.

Objective

In particular, this Statement requires that:

(a) limited development of the existing accounting practices for exploration and evaluation expenditure;
(b) an entity that recognizes the exploration and evaluation assets to assess whether the asset has decreased value in accordance with this Statement and measure any impairment in accordance with IAS 48 (revised 2009): Impairment of Assets; (c) disclosure that identifies and explains the amount arising from the exploration and evaluation mineral resources in the financial statements and help users of financial statements to understand amount, timing and certainty of future cash flows of any exploration and evaluation assets are recognized.

The Scope

Entity applies this Statement of expenditure that occurred on exploration and evaluation.

This statement does not regulate other aspects of accounting from entities that perform exploration and resource evaluation mineral resources.
Entities This statement does not apply to expenditure incurred: (a) prior to exploration and evaluation of mineral resources, such expenditure incurred before the entity obtain legal rights to explore a certain areas. (b) after the technical feasibility and commercial viability of mining of mineral resources can be proved.

RECOGNITION OF EXPLORATION AND EVALUATION ASSETS

When developing its accounting policies, entity recognizes the assets exploration and evaluation using PSAK 25 (revised 2009) Accounting Policies, Changes Accounting Estimates and Errors paragraph 10. Which are : In the absence of GAAP that are spesific applies to transactions, events or other conditions, the management uses discretion in develop and implement a policy produce accounting information that: (a) relevant to the needs of decision-making economy by the user; and (b) reliable, in the financial statements: (i) present fairly the financial position, performance finance, and cash flows; (ii) reflect the economic substance of transactions, events or other conditions, and not just legal form;bentuk hukumnya;(iii) netral, yaitu bebas dari bias;(iv) pertimbangan sehat; dan(v) lengkap dalam semua hal yang material.

MEASUREMENT OF EXPLORATION AND EVALUATION ASSETS

Measurement When Using Recognition

Exploration and evaluation assets are measured at cost acquisition.

Component Exploration and Asset Acquisition Cost evaluation

The entity determines that an accounting policy which specific expenditures are recognized as exploration assets and evaluation and apply them consistently. In determine this accounting policy, the entity to consider level of expenditure that can be associated with the discovery specific mineral resources. Here are examples of expenditures that can be included in the initial measurement of exploration assets and evaluation (not limited to the following list):
(a) the acquisition for exploration; (b) study of topography, geology, geochemistry, and geophysics;

(c) exploratory drilling;

(d) trench; (e) sampling; and (f) activity associated with the evaluation of technical feasibility andcommercial viability of mining resources mineral resources.

Component Exploration and Asset Acquisition Cost evaluation

Expenses associated with the development mineral resource exploration is not recognized as an asset and evaluation. Basic Framework for Preparation and Presentation of Reports Finance and IAS 19 (revised 2010): No intangible assets provide guidance on the recognition of assets arising from development.

In accordance with IAS 57 (revised 2009): Provisions, Contingent Liabilities and Contingent Assets an entity acknowledge any liability for removal and restoration which occurred during a certain period as a consequence of exploration and evaluation of mineral resources.

Measurement After Recognition

After initial recognition, an entity applies the wrong one cost model or revaluation model for exploration assetsand evaluation. If an entity applies the revaluation model (model in PSAK 16 (2007): Fixed Assets or the model in PSAK 19 (revised 2010): No intangible assets), then applied entities consistent with the classification of these assets are consistent (see paragraph 14).

PRESENTATION Exploration and Evaluation Assets Classification

Entities classify exploration and evaluation assets as tangible assets or intangible assets in accordance with nature of the assets acquired and apply the classification consistently.
Some exploration and evaluation assets are treated as an intangible asset (eg drilling rights),while the other as tangible assets (eg facilities and drilling rigs). Throughout the intangible assets that are used in developing an intangible asset, the amount reflect such use as part of the cost Intangible asset acquisition. However, the use of assets intangibles to develop an intangible asset does not transform Tangible assets into intangible assets.

Reclassifying Exploration and Evaluation Assets

An asset is classified as exploration assets and evaluation when the technical feasibility and business continuity for commercial mining of mineral resources may proved. Exploration and evaluation assets are tested decreased value, and any impairment loss is recognized, before reclassified.

IMPAIRMENT Recognition and Measurement

Exploration and evaluation asset impairment tested when the facts and conditions state that the carrying amount exploration and evaluation assets exceeds the recoverable amount. When the facts and conditions state that the carrying amount exploration and evaluation assets exceeds the recoverable amount, entity to measure, present and disclose any impairment loss in accordance with PSAK 48 (revised 2009): Impairment of Assets, except as shown in paragraph 20.

DISCLOSURE

An entity disclose information that identify and explain the amount that has been recognized in the financial statements arising from the exploration and evaluation of mineral resources. To satisfy paragraph 22, the entity reveals: (a) the accounting policy for exploration expenditures and evaluation including the recognition of exploration assets and evaluation. (b) the amount of assets, liabilities, income and expenses, and cash flow operating and investing cash flows arising from the exploration and evaluation of mineral resources. The entity treats and exploration assets evaluation as a separate asset classes and making disclosures required by PSAK 16 (revised 2007): Assets Fixed or PSAK 19 (revised 2010): intangible assets are consistent about how those assets are classified.