Australia’s three professional accountancy
bodies have called for the International Accounting Standards Board
(IASB) to add extractive activities to its agenda as a matter of
priority.
CPA Australia, the Institute of Chartered
Accountants Australia and the National Institute of Accountants
were responding to the IASB extractive activities discussion paper
and the Australian Accounting Standards Board (AASB) invitation to
comment.
CPA Australia says extractive activities
should be addressed for both public entities using IFRS and private
entities using IFRS for SMEs.
CPA Australia said it is unconvinced there is
a need for a financial reporting approach specific to extractive
activities.
The accounting body suggested extractive
industry proposals follow the principles of the IASB’s conceptual
framework for financial reporting and the requirements in existing
standards, with potential amendments taking into account specific
extractive industry issues.
Extractive activities cover all aspects of the
search for, finding, and extraction of minerals, oil and gas.
Extractive activities are Australia’s most
lucrative industry.
