Extractive Activities: New Reporting Standards Proposals to change Disclosure Requirements

Proposed amendments to financial and disclosure requirements in the extractive industries sector will see a significant overhaul of existing standards and greater obligations on entities to declare information on a number of activities that currently may go unreported. Initial research completed into International Financial Reporting Standards (IFRS) will oblige companies in this sector to disclose information in an arena where, broadly, there has been minimum IFRS requirements for disclosure thus far.

Released for comment recently, the Extractive Activities Discussion Paper proposes far-reaching disclosure compliance principles in the interests of shareholders and investors and other sectoral stakeholders. The proposals are also intended to provide a standardised platform for companies with extractive activities to produce and compare financial results.