BC50 The disclosure requirements in the IFRS are based on a principle that an entity should disclose information that identifies and explains the amounts recognised in its financial statements that arise from the exploration for and evaluation of mineral resources, supplemented by specified disclosures to meet that objective.

BC51 Although respondents agreed that entities should be allowed flexibility in determining the levels of aggregation and amount of disclosure, they suggested that the Board should introduce more specific and standardised disclosure requirements. Some respondents were concerned that the variety of accounting for the exploration for and evaluation of mineral resources could reduce comparability.

BC52 The Board concluded that the ED 6 approach was superior to requiring a long list of detailed and prescriptive disclosures because concentrating on the underlying principle:

(a) makes it easier for entities to understand the rationale for the requirements, which promotes compliance.

(b) avoids requiring specific disclosures that may not be needed to meet the underlying objectives in the circumstances of every entity and could lead to information overload that obscures important information in a mass of detail.

(c) gives entities flexibility to decide on an appropriate level of aggregation that enables users to see the overall picture, but without combining information that has different characteristics.