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Statement on
Auditing Standards
Issued by the Auditing Standards Board
AICPA American Institute of
Certified Public Accountants
February 1982
40
Supplementary Mineral Reserve
Information
( This SAS should be read and applied in conjunction with Statement on
Auditing Standards No. 27, Supplementary Information Required by the
Financial Accounting Standards Board.)
1. FASB Statement No. 39, Financial Reporting and Changing
Prices: Specialized Assets — Mining and Oil and Gas, requires entities
of certain size that have mineral reserves other than oil and gas1 to
disclose certain quantity and price information. 2 This supplementary
information may be disclosed outside the basic financial statements.
2. Estimating mineral reserves is a complex process requiring the
knowledge and experience of a specialist, generally a mining engineer
or a geologist. In general, the quality of the estimate of proved, or
proved and probable, reserves for an individual ore body depends
on the availability, completeness, and accuracy of data needed to
1Quantity disclosures for oil and gas reserves are required by FASB Statement
No. 19, Financial Accounting and Reporting by Oil and Gas Producing Companies.
The auditor's consideration of such disclosures is described in SAS No.
33, Supplementary Oil and Gas Reserve Information, which should also be
applied in conjunction with SAS No. 27.
2FASB Statement No. 39 also requires that the general guidelines of FASB
Statement No. 33, Financial Reporting and Changing Prices, for reporting the
effects of changing prices be applied to the mineral resource assets of mining
and oil and gas enterprises. The auditor's consideration of such disclosures is
described in SAS No. 28, Supplementary Information on the Effects of Changing
Prices, which should also be applied in conjunction with SAS No. 27.
Copyright © 1982 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036- 8775
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