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Institute For Oil & Gas Training
OGI-1118 New

IFRS 6 – Exploration & Evaluation Assets: Recognition Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

IFRS 6 – Exploration & Evaluation Assets is a specialised financial reporting course designed for oil and gas professionals responsible for recognising, measuring and reporting exploration and evaluation expenditure. Institute For Oil & Gas Training delivers this programme within the Oil and Gas Petroleum IFRS & Financial Reporting specialisation, focusing on the accounting decisions that arise before technical feasibility and commercial viability are established.

Oil and gas organisations operate through investment cycles that involve licensing, geological assessment, seismic surveys, exploratory drilling, resource evaluation and development planning. These activities generate significant expenditure before an entity has established whether a discovered resource is technically feasible and commercially viable. The accounting treatment of this expenditure has a direct influence on financial statements, asset balances, impairment assessments, management reporting and investment decisions.

The course addresses the practical accounting challenges associated with IFRS 6 and the recognition of exploration and evaluation assets. Participants examine how organisations establish an appropriate capitalisation policy, distinguish eligible exploration and evaluation expenditure from costs that require immediate recognition, and apply the temporary exemption provided by IFRS 6 from certain requirements of other IFRS Standards.

The programme gives particular attention to pre-licence costs, licence acquisition costs, geological and geophysical activities, exploratory drilling, technical evaluation, resource assessment and other expenditure associated with exploration and evaluation activities. Participants develop a structured understanding of when expenditure qualifies for recognition as an exploration and evaluation asset and when it should be recognised as an expense.

A central feature of the course is the relationship between accounting policy and the operational realities of upstream oil and gas activities. Exploration decisions are driven by geological, engineering and commercial assessments, while financial reporting requires those decisions to be reflected consistently in accordance with applicable accounting requirements. Participants therefore examine the interaction between finance, exploration, subsurface, drilling, asset management and corporate reporting functions.

The course also explores measurement after initial recognition, including the cost model versus revaluation model where the relevant requirements permit their application. It examines how entities develop accounting policies that remain consistent with their exploration portfolios and how those policies are applied across relevant asset classes and projects.

Another important area is the transition from exploration and evaluation activities to development. When technical feasibility and commercial viability of extracting a resource are demonstrated, the accounting treatment changes. Participants examine the circumstances that lead to reclassification to development assets and the subsequent application of other relevant accounting requirements.

Impairment is also addressed because exploration and evaluation assets require focused assessment when facts and circumstances indicate that their carrying amount may not be recoverable. Participants explore indicators connected with unsuccessful exploration, expiry of exploration rights, discontinued activities, insufficient resources and decisions to abandon projects.

Institute For Oil & Gas Training structures the course around realistic upstream accounting situations rather than purely theoretical discussion. This enables finance professionals and operational stakeholders to connect IFRS requirements with actual exploration project decisions, expenditure records, licence arrangements and asset classification processes.

The programme is particularly relevant to organisations seeking stronger coordination between accounting policies and upstream project governance. It supports more consistent treatment of exploration expenditure, clearer documentation of accounting judgements and stronger communication between finance teams and technical personnel.

The total course duration is 15 to 20 hours and provides a focused professional development programme for personnel involved in petroleum accounting, financial reporting, exploration finance, asset accounting, project controls, audit support and upstream commercial management.

Objectives

  • Understand the purpose and scope of IFRS 6 – Exploration & Evaluation Assets within upstream oil and gas financial reporting

  • Identify expenditure that qualifies for recognition as exploration and evaluation assets

  • Distinguish exploration and evaluation expenditure from costs that require immediate expense recognition

  • Assess the accounting treatment of pre-licence costs and licence acquisition costs

  • Develop and apply an appropriate capitalisation policy for exploration and evaluation activities

  • Understand the temporary exemption provided by IFRS 6 from selected IFRS requirements

  • Evaluate the cost model versus revaluation model in the context of applicable exploration and evaluation assets

  • Understand the relationship between exploration accounting and technical feasibility

  • Assess the accounting implications when commercial viability is established

  • Recognise the circumstances leading to reclassification to development assets

  • Identify impairment indicators affecting exploration and evaluation assets

  • Understand the interaction between IFRS 6 and other applicable IFRS Standards

  • Improve documentation of accounting judgements and financial reporting decisions

  • Strengthen communication between petroleum accountants and technical exploration teams

  • Apply IFRS requirements to realistic upstream oil and gas transactions and project scenarios

  • Support consistent and defensible financial reporting practices across exploration portfolios

Training methodology

Institute For Oil & Gas Training uses a practical corporate delivery approach that connects IFRS requirements with the financial and operational decisions encountered by oil and gas organisations.

Practical Case Studies

Participants work through realistic exploration and evaluation scenarios covering licence acquisition, seismic activity, exploratory drilling, geological assessment and project progression. Each case examines the accounting consequences of different expenditure categories and project outcomes.

Financial Reporting Simulations

Simulated reporting exercises demonstrate how exploration and evaluation expenditure moves through the financial reporting process. Participants assess transaction information, determine appropriate recognition treatment and consider the effect on asset balances and financial statements.

Group Exercises

Group exercises bring finance and operational perspectives together. Participants analyse accounting judgements involving capitalisation policy, asset classification, impairment indicators and reclassification to development assets.

Real-World Scenarios

The programme uses scenarios reflecting common upstream business situations, including unsuccessful exploration campaigns, changes in exploration plans, licence expiry, technical assessment and progression towards development.

Accounting Decision Workshops

Participants examine decision points that require professional judgement and develop structured approaches for documenting accounting conclusions. The exercises emphasise consistency, evidence and alignment with applicable IFRS requirements.

Cross-Functional Application

The methodology connects financial reporting with exploration, engineering, commercial and project management processes. This approach helps participants understand how operational information supports accounting conclusions.

Applied Reporting Discussions

Participants evaluate how accounting decisions affect management reporting, financial statement preparation, audit discussions and communication with internal stakeholders. The emphasis remains on practical application within corporate oil and gas environments.

Organisational impact

Effective accounting for exploration and evaluation activities supports stronger financial control across the upstream portfolio. Organisations benefit from clearer policies governing which expenditure is capitalised and which expenditure is recognised as an expense.

A clearly defined capitalisation policy improves consistency across exploration projects. Finance teams gain a structured basis for assessing expenditure categories, while operational teams gain a clearer understanding of the financial information required to support accounting treatment.

The course also strengthens the connection between accounting and exploration project governance. Geological, engineering and commercial information often determines whether an exploration project remains within the exploration and evaluation phase or progresses towards development. Better understanding of these relationships improves the quality of information provided to finance functions.

Organisations gain improved control over pre-licence costs and licence acquisition costs by establishing clearer distinctions between eligible expenditure and costs that fall outside the recognition requirements. This supports more disciplined project accounting and improves the quality of expenditure analysis.

The programme also supports more consistent application of accounting policies across multiple assets, licences and jurisdictions. This is particularly important for oil and gas groups managing diverse exploration portfolios with different project stages and operational characteristics.

Improved understanding of impairment indicators helps organisations respond more effectively to changes in exploration outcomes, project plans and resource assessments. Finance personnel become better equipped to identify information that requires further accounting review.

The transition from exploration and evaluation to development represents another significant governance point. Clear understanding of technical feasibility, commercial viability and reclassification to development assets supports better coordination between technical teams, project managers and financial reporting functions.

The programme also improves audit readiness. When accounting judgements are supported by appropriate project information and documented policies, finance teams are better positioned to explain recognition, measurement, impairment and classification decisions.

For senior management, stronger IFRS 6 knowledge supports more transparent interpretation of exploration expenditure and asset balances. For finance departments, it strengthens reporting processes and policy consistency. For operational departments, it improves understanding of the financial consequences associated with exploration decisions.

Personal impact

Participants develop practical expertise in IFRS 6 and its application within the oil and gas industry. The programme strengthens their ability to analyse exploration expenditure and reach structured accounting conclusions.

Finance professionals improve their ability to identify eligible exploration and evaluation costs and distinguish them from expenditure requiring different accounting treatment. This supports greater confidence when reviewing project expenditure and preparing financial reporting information.

Participants also strengthen their understanding of capitalisation policy. They learn how accounting policies interact with exploration activities and how consistent application supports reliable reporting across different projects.

The course improves cross-functional communication skills by giving finance professionals a stronger understanding of exploration terminology and project progression. Participants can engage more effectively with geologists, petroleum engineers, drilling teams, project managers and commercial personnel.

Professionals involved in financial reporting gain stronger capabilities in analysing technical information that affects accounting decisions. This includes information relating to exploration results, technical feasibility, commercial viability, project continuation and development decisions.

Participants also develop greater awareness of impairment considerations and the circumstances that require reassessment of exploration and evaluation assets. This supports more effective preparation for internal reviews and external audit processes.

The programme strengthens professional capability for roles involving petroleum accounting, exploration finance, project controls, financial reporting and upstream commercial analysis. It also provides a stronger foundation for professionals who participate in accounting policy development and financial reporting governance.

Who should attend

Petroleum Accountants

Designed for accountants responsible for exploration expenditure, upstream asset accounting and petroleum financial reporting.

Financial Reporting Managers

Relevant for managers responsible for IFRS reporting, accounting policies, financial statement preparation and technical accounting matters.

Exploration Finance Professionals

Supports professionals who monitor exploration expenditure and coordinate financial information with technical exploration teams.

Finance Controllers

Provides practical insight into recognition, measurement, impairment and classification decisions affecting exploration portfolios.

Project Controls Professionals

Helps project controls personnel understand how exploration expenditure and project progression influence financial reporting.

Exploration Managers

Provides operational managers with a stronger understanding of how exploration decisions affect accounting treatment and financial reporting.

Petroleum Engineers

Relevant for engineers who provide technical information supporting assessments of technical feasibility, commercial viability and project progression.

Geoscience Professionals

Helps geoscientists understand how exploration results and technical assessments contribute to financial reporting decisions.

Commercial Managers

Supports professionals involved in evaluating project economics, development decisions and the commercial progression of exploration assets.

Internal Audit Professionals

Provides a stronger understanding of IFRS 6 processes, accounting controls and documentation requirements within upstream operations.

External Audit and Assurance Professionals

Useful for professionals reviewing the accounting treatment of exploration and evaluation activities within petroleum entities.

Senior Finance Professionals

Designed for senior personnel responsible for accounting governance, financial reporting quality and technical accounting decisions.

Course outline

This module establishes the accounting foundation for exploration and evaluation activities. Participants examine the scope of IFRS 6, the nature of exploration and evaluation assets and the principles governing recognition of relevant expenditure.

  1. IFRS 6 Exploration and Evaluation

    • Establishes specific accounting requirements for exploration and evaluation activities

    • Provides a framework for recognising qualifying exploration and evaluation assets

    • Contains requirements addressing measurement, presentation and impairment

    • Provides a temporary exemption from selected IFRS requirements during the exploration and evaluation phase

    Learning Outcomes

    • Explain the scope and purpose of IFRS 6

    • Identify exploration and evaluation activities covered by the Standard

    • Assess expenditure for potential recognition as an exploration and evaluation asset

    • Distinguish qualifying expenditure from non-qualifying costs

    • Explain the accounting considerations associated with pre-licence costs and licence acquisition costs

    • Apply recognition principles to practical upstream scenarios

This module focuses on developing and applying a consistent capitalisation policy for exploration and evaluation expenditure. Participants examine initial measurement and the treatment of different cost categories within upstream projects.

  1. IAS 8 Accounting Policies

    • Establishes requirements concerning accounting policies and their application

    • Supports consistent accounting treatment across comparable transactions

    • Provides principles relevant to developing accounting policies where IFRS requirements permit policy choices

    • Supports transparent documentation of accounting policy judgements

    Learning Outcomes

    • Develop a structured capitalisation policy for exploration and evaluation expenditure

    • Classify different categories of exploration expenditure

    • Apply initial measurement principles to realistic transactions

    • Assess the treatment of directly attributable costs

    • Improve documentation supporting capitalisation decisions

    • Promote consistency across exploration projects and reporting periods

This module examines subsequent measurement and the relationship between exploration and evaluation assets and other asset categories. Participants analyse the cost model versus revaluation model and the circumstances that lead to changes in asset classification.

  1. IAS 16 Property Plant and Equipment

    • Establishes accounting principles for property, plant and equipment

    • Contains requirements relevant to subsequent measurement using permitted models

    • Provides principles applicable when assets move into development and production phases

    • Supports consistent asset classification and measurement practices

    Learning Outcomes

    • Explain subsequent measurement considerations for exploration and evaluation assets

    • Compare the cost model versus revaluation model within the relevant accounting framework

    • Understand the significance of technical feasibility in project progression

    • Understand the role of commercial viability in development decisions

    • Identify circumstances requiring reclassification to development assets

    • Coordinate asset classification decisions with technical and project information

This module focuses on impairment considerations affecting exploration and evaluation assets. Participants examine facts and circumstances that indicate potential impairment and learn how technical and commercial information influences financial reporting assessments.

  1. IAS 36 Impairment of Assets

    • Establishes principles for identifying and accounting for impairment

    • Provides requirements for assessing whether asset carrying amounts remain recoverable

    • Supports impairment analysis when relevant facts and circumstances arise

    • Provides a framework for recognising and measuring impairment losses

    Learning Outcomes

    • Identify significant impairment indicators affecting exploration assets

    • Analyse exploration and project information relevant to impairment assessment

    • Understand the relationship between IFRS 6 and IAS 36

    • Assess the financial reporting implications of unsuccessful exploration

    • Improve documentation supporting impairment reviews

    • Strengthen communication between technical and finance teams during impairment assessments

The final module integrates the recognition, measurement, impairment and classification principles covered throughout the course. Participants focus on the transition from exploration and evaluation to development and the resulting financial reporting requirements.

  1. IAS 1 Financial Statement Presentation

    • Establishes principles for presentation of financial statements

    • Supports clear and structured presentation of material financial information

    • Provides a framework for communicating accounting policies and relevant judgements

    • Supports consistency and transparency in financial reporting

    Learning Outcomes

    • Integrate IFRS 6 recognition and measurement principles into broader financial reporting processes

    • Evaluate the accounting consequences of technical feasibility and commercial viability

    • Identify appropriate points for reclassification to development assets

    • Strengthen financial statement presentation and disclosure practices

    • Improve communication between finance, technical and commercial functions

    • Apply the complete IFRS 6 decision process to an integrated upstream case study

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course.

The certificate is provided to participants who fulfil the attendance requirement for the programme. Participants are expected to attend the required course sessions and complete the scheduled programme to qualify for the Certificate of Completion.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does this IFRS 6 training course cover?

The course covers recognition and measurement of exploration and evaluation assets, exploration and evaluation expenditure, capitalisation policy, impairment considerations and the transition towards development. It also examines pre-licence costs, licence acquisition costs, technical feasibility, commercial viability and reclassification to development assets.

Who is this course designed for?

The programme is designed for petroleum accountants, financial reporting professionals, finance controllers, exploration finance specialists, project controls personnel, exploration managers, petroleum engineers, geoscience professionals, commercial managers and audit professionals working with upstream oil and gas activities.

How is the IFRS 6 course delivered?

Institute For Oil & Gas Training uses practical case studies, financial reporting simulations, group exercises, accounting decision workshops and real-world upstream scenarios. The methodology connects IFRS requirements with exploration, technical and commercial project information.

Does the course cover exploration and evaluation expenditure?

Yes. The programme examines how exploration and evaluation expenditure is identified, classified and assessed for recognition. It covers relevant expenditure categories, pre-licence costs, licence acquisition costs and the development of an appropriate capitalisation policy.

What certificate is provided after completing the course?

Attendees who fulfil the required attendance requirement receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course.

Next: 05 Oct 2026

4 dates available

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