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Question - The Sand Company is involved in the exploration of mineral resources. Its policy is to recognize exploration assets and measure them initially at cost. At the end of 2017, the following amounts were extracted from Sand's financial statements:
Trenching and sampling expenditure: 100,000
Drilling rigs used in exploration (carrying amount): 800,000
Depreciation of drilling rigs used in exploration: 150,000
Professional fees for geologist, geochemist, and geophysician for evaluation of mineral resources: 250,000
In accordance with IFRS 6 Exploration and Evaluation of Mineral Resources, how much should be presented as intangible exploration asset?
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