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IFRS Interpretations Committee publishes proposed guidance on surface mining

Aug 26, 2010

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 draft Interpretation considers the following questions:

  • (a) Is the definition of an asset met?
  • (b) When should the stripping campaign component be recognised?
  • (c) How should the stripping campaign component be measured initially?
  • (d) How should the stripping campaign component be measured subsequently?

The IFRS Interpretations Committee has reached the conclusion 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 Mine is open for comment until 30 November 2010. It can be accessed via the IASB's website. The IASB's press release is available here (PDF 35k). Our related project page offers a summary of the discussions leading up to the publishing of the draft Interpretation.