Which of the following is not within the scope of the IASB extractive activities project?

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This question asks which item is not within the scope of the IASB extractive activities project. 
Option 1: The definition of reserves and resources. In many accounting projects related to extractive activities, clarifying what counts as reserves and resources is fundamental because it underpins measurement, disclosure, and recognition decisions. Therefore, this option is typically considered within scope. 
Option 2: Disclosure requirements for reserves and resources. Disclosure is a core element of IFRS projects, and the extractive activities project commonly addresses what needs to be disclosed about reserves and resources, including uncertainties, estimation methods, and assumptions. Thus, this is likely within scope. 
Option 3: Measurement of reserves and resources on initial recognition as an asset. Initial recognition and measurement of reserves and resources as assets would imply establishing a benchmark for when reserves/resources are recognized as assets and how they are measured at that moment. In practice, the extractive activities project tends to focus on exploration and evaluation assets and related costs, rather than creating a separate framework for measuring reserves/resources as assets on initial recognition. Because this specific measurement treatment is not typically framed as a primary scope item of the project, this option is a strong candidate for being outside the scope. 
Option 4: Whether to expense or capitalise costs recognised after recognition of reserves and resources as assets. The ongoing treatment of post-recognition costs (expensing versus capitalising) is a core topic in extraction-related accounting projects, as it affects subsequently recognised assets and impairment considerations. Therefore, this is generally within scope. 
In summary, options 1, 2, and 4 align with common scope items of the IASB extractive activities project, while option 3 concerns initial recognition measurement as an asset, which is not typically a primary focus of the project. The reasoning above supports option 3 as the item not within scope.

22420 Accounting Standards and Regulations - Spring 2025 Checkpoint week 5

Which of the following is not within the scope of the IASB extractive activities project?

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