Through an analysis of the financial statements and IFRS restatements of a number of early adopters of IFRS 6 in the United Kingdom (U.K.) Assessing the Impact attempts highlight the areas which impacted the adopters' financial statements the most, such as write-offs of unsuccessful exploration and pre-licence acquisition costs. The survey includes extracts from accounting policy disclosures for exploration and evaluation (E&E) costs and looked at some of the issues the companies encountered on adoption. The survey demonstrates the range of different approaches companies have taken to accounting under IFRS 6 and highlights the information first time adopters should be collecting to avoid problems in identifying E&E costs to an appropriate level of detail.
We hope that Assessing the Impact will be a useful resource for those Oil and Gas companies who are now embarking on the IFRS transition process.