Welcome to the website of the IFRS Foundation and the IASB

Saturday 19 April 2014

Banner graphic

Stripping Costs in the Production Phase of a Surface Mine

Stripping Costs in the Production Phase of a Surface Mine


Stripping Costs in the Production Phase of a Surface Mine


 

On 19 October 2011 the IASB issued an Interpretation clarifying the requirements for accounting for stripping costs in the production phase of a surface mine. The Interpretation was developed by the IFRS Interpretations Committee, the interpretative body of the IASB.

The Interpretations Committee was asked to clarify when and how to account for stripping costs (the process of removing waste from a surface mine in order to gain access to mineral ore deposits) to address diversity in practice.

The Interpretation clarifies when production stripping should lead to the recognition of an asset and how that asset should be measured, both initially and in subsequent periods. The Interpretation is effective for annual periods beginning on or after 1 January 2013 with earlier application permitted.

The IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine is available for eIFRS subscribers on http://eifrs.ifrs.org.

 

 

 

 

 

 

 

Related information

 

Project contacts

Michael Stewart
Director of Implementation Activities
email: mstewart@ifrs.org

 

Denise Durant
Technical Manager
email: ddurant@ifrs.org