Most of the comment letters received by the
International Accounting Standards Board (IASB) on a discussion
paper proposing an IFRS for extractive activities said the project
should go forward.

However, many respondents questioned whether
creating a separate standard is the right way forward.

The extractive activities paper discusses how
a new standard could improve the relevance and comparability of
financial reporting on extractive activities of companies in the
mining, oil and natural gas sectors.

A key feature of the proposal is that
extractive activities entities must present key financial
information on a country-by-country basis rather than the current
practice of aggregating information by region or business line.

The Association of Charted Certified
Accountants (ACCA) supported the creation of a new standard, but
said the discussion paper lacks a clear rationale for why a
distinct accounting approach is needed for entities operating in
the extractive activities sectors.

“We believe the IASB should further
investigate why the current suite of IFRS cannot be appropriately
applied by these sectors,” the ACCA said.

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By GlobalData

The Institute of Chartered Accountants for
England and Wales (ICAEW) does not support a development of a
distinct IFRS for extractive industries and said the IASB should
re-examine the existing IFRS in the context of extractive
industries.

The deadline for comments on the extractive
activities discussion paper was 30 July.

The IASB will now analyse and review the
proposals and comments before deciding whether to put the project
on its agenda.