While many will be aware of the Australian Securities Exchange’s (ASX’s) 2007 proposal to amend the Listing Rules to improve reserve reporting, there have since been further investigations into these issues. The International Accounting Standards Board (IASB) and the Australian Accounting Standards Board (AASB) released a discussion paper (DP 2010/1) raising for consideration major accounting practices adopted by the oil and gas and mining industries in their reserve reporting. For a detailed review of the IASB/AASB discussion paper, please click here.

As a result of these recent discussions, the ASX has decided not to proceed with the amendments proposed in 2007. Instead, it is conducting its own research to analyse the unique financial reporting issues applicable to extractive activities and to identify an adequate basis on which a financial reporting model might be established to address such issues domestically.

The ASX will publish the results of its research later this year. Feedback on these discussion papers will be incorporated into an exposure draft of any Listing Rule amendments which may be identified. We expect that any exposure draft will be released by the ASX around the middle of next year.

More information can be found on the IASB and AASB websites at www.iasb.org and www.aasb.gov.au.