What does IFRS 6 cover for oil, gas and mining companies?

IFRS 6 Exploration for and Evaluation of Mineral Resources governs the recognition, measurement and disclosure of exploration and evaluation expenditure. It permits entities to continue existing accounting policies for these costs, which is why practice varies widely across the sector. The judgemental areas are where expenditure begins to qualify, when exploration and evaluation assets must be reclassified to development assets, and how impairment is assessed under the standard's modified indicators. The programmes work through each with sector-specific examples for both upstream oil and gas and hard-rock mining.

How does IFRIC 20 apply to stripping costs in surface mining?

IFRIC 20 requires a stripping activity asset to be recognised when waste removal in the production phase improves access to an identifiable component of the ore body to be mined in future periods, and the costs can be measured reliably. The asset is measured at cost and subsequently depreciated over the component's expected useful life on a units-of-production basis. Identifying ore body components and allocating costs between inventory and the stripping asset are the practical difficulties, and both are covered in detail.

How does IAS 37 apply to decommissioning and rehabilitation provisions?

IAS 37 requires a provision when a present obligation exists, an outflow is probable and a reliable estimate can be made. For oil and gas platforms, pipelines, LNG facilities and mine sites, the provision is measured at the present value of expected future costs, with the unwinding of the discount recognised as a finance cost. Changes in estimates — cost assumptions, timing, or the discount rate — adjust both the provision and the related asset under IFRIC 1, creating interactions with IAS 16 that frequently cause error. These mechanics are worked through with full journal entries.

How does the energy transition affect IFRS reporting?

Transition commitments and shifting demand assumptions have consequences across several standards: impairment indicators and value-in-use assumptions under IAS 36, including stranded asset risk; useful lives and residual values of long-lived assets under IAS 16; the recognition and measurement of environmental and restoration obligations under IAS 37; and disclosure under IFRS S1 and IFRS S2. The programmes address how these interact rather than treating each standard in isolation.

Which sectors and locations do the programmes cover?

Each programme reflects the sector that dominates its region. Mining, metals and critical minerals run in Toronto, Sydney, Cape Town, Lima, Singapore and Hong Kong. Upstream oil, gas and LNG run in Abu Dhabi, Riyadh, Doha, Dubai, Calgary, New York, Port of Spain, Accra, Kuala Lumpur and Rio de Janeiro. Power, utilities, renewables and energy transition run in London, The Hague, Brussels and Chicago. Commodities trading is covered in Zurich, and an online edition is available worldwide.

Who should attend, and is in-house delivery available?

The programmes suit financial controllers, group and technical accountants, financial reporting managers, finance directors, joint venture and commercial accountants, internal and external auditors, and analysts covering the sector. Bespoke in-house delivery is available worldwide, built around an organisation's own asset portfolio, contract structures and jurisdictions, and a 15% group discount applies for bookings of five or more participants.

IFRS training for energy and extractive industries covering oil, gas, power, utilities, mining, IFRS 6, IAS 37, IFRIC 20 and decommissioning

Professional Training Courses

IFRS for Oil & Gas, Power, Utility, and Mining Industries (2-Day)

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IFRS Training for Oil, Gas, Mining, Power, Utilities & Renewables| IFRS 6, IFRIC 20, IAS 37 and Decommissioning

Extractive and energy companies face reporting problems that general IFRS training does not reach. Exploration and evaluation assets, stripping costs, decommissioning and restoration provisions, production sharing contracts, power purchase agreements and joint arrangements all demand judgement that the standards address only in outline — and the energy transition has added impairment, useful life and disclosure questions on top.

These programmes work through each in turn: IFRS 6 exploration and evaluation for upstream oil, gas and mining; IFRIC 20 stripping costs in surface operations across gold, copper, iron ore, lithium and coal; IAS 37 decommissioning and restoration provisions; IFRS 15 revenue, including take-or-pay and offtake arrangements; IFRS 16 leases in capital-intensive operations; IAS 36 impairment of cash-generating units; and IFRS 11 joint arrangements and joint operations. Sessions are built around real sector case studies rather than the text of the standards.

Programmes run in mining, energy and financial centres worldwide — including Toronto, Calgary, Sydney, Cape Town, Lima, Rio de Janeiro, Singapore, Hong Kong, Kuala Lumpur, Abu Dhabi, Riyadh, Doha, Dubai, London, The Hague, Brussels, Zurich, Chicago, New York, Port of Spain and Accra — and online. Contact us to discuss dates or in-house delivery.

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