The IFRS Interpretations Committee, the interpretative body of the IASB, has today published for public comment proposed guidance on the accounting for stripping costs in the production phase of a surface mine.
The Committee was asked to consider how to account for stripping costs (the process of removing waste from a surface mine in order to gain access to mineral ore deposits) given the divergence in practice that exists.
The Committee has proposed that costs associated with a ‘stripping campaign’ should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.
DI/2010/1 Stripping Costs in the Production Phase of a Surface Mineis open for comment until 30 November 2010 and can be accessed via the ‘ Comment on a Proposal’section of www.ifrs.org.
- Mark Byatt, Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
- Luci Wright , Technical Manager, IASB
Telephone: +44 (0)20 7246 6914