ob体育 notes the decision by Medusa Mining Limited (Medusa) to derecognise exploration and evaluation assets of US$56 million in its upcoming financial report for the half-year ended 31 December 2017.聽 Medusa has changed its accounting policy to expense all exploration and evaluation amounts as incurred.
ob体育 raised concerns about the recoverable amount of Medusa鈥檚 exploration and evaluation assets in it鈥檚 financial report for the year ended 30 June 2017.聽 These assets had not been taken into account when testing the assets of Medusa鈥檚 mining operation for impairment.
As outlined in ob体育 media release聽 ob体育 calls on preparers to focus on the financial report quality and new requirements, impairment testing and asset values remains a focus area of our financial reporting surveillances.