Componentization – Capitalization Criteria and Depletion
|This session provides a comprehensive overview of the capitalization criteria, accounting for depletion and the "component accounting" approach under IFRS. Throughout the session, examples of how the technical IFRS standards relate to the junior oil and gas industry is addressed. Specifically, this session focuses on the following: |
- Discussion of the capitalization criteria under IFRS, answering the question "what is eligible for capitalization?"
- Overview of the accounting treatment for borrowing costs under IFRS
- Comprehensive discussion of depletion and depreciation under IFRS and what it means to follow "component accounting"
- Practical application of the IFRS guidance demonstrated through examples targeted for the junior oil and gas industry
- Overview of related IFRS 1 "First-time Adoption of IFRS" transitional implications
2009 IFRS Conference for the Junior Oil & Gas Industry – Practical Guidance for Implementing IFRS, November 16-17, 2009, Calgary, AB
Audio synchronized to PowerPoint presentation: 39 slides, length 01:01:07