Current CRIRSCO Activities
The International Reporting Template
Download The CRIRSCO International Reporting Template here 856 KB.
The CRIRSCO Template, now published on this web site, is intended to be a guideline for countries developing their own reporting standards, and a benchmark for comparison with other international reporting systems, including the UNFC and the Society of Petroleum Engineers (SPE) Guidelines. It is not intended as a replacement for existing well-established national reporting standards.
As each new or updated national reporting standard is developed, it is reviewed by the other members of CRIRSCO in cooperation with the particular national reporting committee, to ensure that it continues to maintain compatibility with other standards. Just as importantly, improvements introduced by the most recent standard can be captured and built into the Template. This rolling process of comparison with previous standards and upgrading by international consensus is highly effective and ensures that changes are kept to a sensible minimum and that the most recent standard is generally seen as ‘best practice’.
Alignment with the United Nations Framework Classification
Although agreement was reached with the UN-ECE in 1999 to incorporate CRIRSCO definitions into the UNFC for those categories of resources and reserves used for market-related reporting, an updated UNFC produced in 2004 with input from the hydrocarbon industry failed to recognise the differences between the hydrocarbon and solid mineral industries in the way they report resources and reserves. As a result the updated UNFC does not serve the minerals industry well. In response, CRIRSCO has re-engaged with the UNECE, and has committed to lead efforts to produce definitions and guidelines based on the CRIRSCO Template that are compatible with the needs of the users of the UNFC. Work continues on this project with the recent release of a UN Task Force report recommending that the UNFC should adopt generic definitions that would cover oil and gas and solid minerals, and that it should be re-drafted as a simpler, ‘umbrella’ reporting standard which would encompass other systems including the CRIRSCO Template and the Petroleum Resource Management System (PRMS).
While few individual companies report their resources and reserves using the UNFC, the system is accepted as a basis for reporting by some governments, including those of China, India and some Eastern European countries. The relevance of these countries to future mining developments, including stock exchange listings, is clear and CRIRSCO is working jointly with Russia and China to map existing systems to the Template and vice versa in order to promote the use of consistent and readily understood definitions and guidelines.
International Financial Reporting Standards for the Extractive Industries
Since 2005, CRIRSCO has been involved in advising the International Accounting Standards Board (IASB), which is considering the development of a new Accounting Standard for the Extractive Industries as part of its International Financial Reporting Standards (IFRS), on the use of mineral reserves and mineral resources for financial reporting purposes. The petroleum industry, through the Society of Petroleum Engineers (SPE), has been similarly involved.
The IASB has recently indicated its preference to use existing, widely accepted reporting systems; primarily the CRIRSCO Template and the PRMS, rather than attempt to develop its own resource and reserve definitions and standards. The ‘rules’ whereby the major assets of an exploration or mining company, its mineral resources and reserves, are used for example in depreciation and impairment are obviously highly relevant to the companies concerned. With the general global acceptance of IFRS, CRIRSCO believes it is increasingly important to engage with regulators such as the IASB and the US Securities and Exchange Commission (SEC) to ensure that the eventual standards do not disadvantage mining companies or render ineffective the various current national reporting standards.
Convergence of Definitions between the Hydrocarbon and Solid Minerals Industries
Arising from discussions with the UNECE and IASB it is clear that there is a perception outside the extractive industries that the hydrocarbon and solid minerals sectors are essentially the same and that resource and reserve definitions should be compatible.
CRIRSCO is participating in discussions with each organisation to demonstrate the similarities, and considerable differences, between reporting systems in the two industries. Continuous contact has been maintained with the SPE Oil and Gas Reserves Committee since early 2006, and in 2007 this resulted in the publication of a CRIRSCO-SPE Mapping Report, available in the “Library” area of this site. CRIRSCO and the SPE continue to work together to assist the UNECE and others to interpret the needs of the two industries and to establish the main points of similarity for potential future convergence.