While IAS 41 disclosures of significant decreases expected in the level of Government grants related to agricultural activity, AASB 1037 does not have a similar specific requirement. The IASC released an issues paper on extractive industries for comment by 30 June. The standard would be restricted to exploration for, and development and production of, minerals. While the primary financial report should be based on historical costs and not on estimated reserve values, information about reserve quantities and values and changes in them, should be disclosed as supplemental information. The committee makes comprehensive recommendations for the recognition, measurement, classification and disclosure of costs, revenues and reserves.
Further details are available on the IASC website .
The views expressed are those of the majority of the JWG and not of the standard setters nor professional organisations in the countries of the representatives. Its primary objective is to reflect in the financial reports of all enterprises the effects of events on the fair value of the enterprise's financial instruments, and certain similar items, in the periods in which the events occur. It would apply to all financial instruments except where there are accounting standards, for example, investments in subsidiaries and associates, or are the subject of a separate study like insurance contracts. The proposed hierarchy for estimating fair value, in order of ranking includes the observable market exit prices for identical instruments, market exit prices for similar financial instruments moving to the use of a present value valuation concept where observable market prices are not available. The exception to this treatment would be for foreign currency translation gains and losses relating to a self-sustaining entity which are transferred to a foreign currency translation reserve in the enterprise's consolidated balance sheet.