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IAS 16 — Stripping costs in the production phase of a mine

Background

An IFRS Interpretations Committee project seeking to eliminate diversity in accounting for the removal of overburden in open-cut mining operations.

 

Current status of the project

This project has been completed.  IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine was issued on 19 October 2011.

 

Project milestones

DateDevelopmentComments
November 2009 Added to the IFRS Interpretations Committee agenda
26 August 2010 IFRIC DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine published Comment deadline 30 November 2010
10 August 2011 Near Final Draft of IFRIC 20 published
19 October 2011 IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine issued Effective for annual periods beginning on or after 1 January 2013

Related Discussions

  • IAS 16 – Accounting for production phase stripping costs in the mining industry

  • May 05, 2011

  • The IFRS Interpretations Committee considered a revised draft Interpretation on this topic and discussed: (1) the recognition principle (2) the method of allocating costs between current and future periods (3) impairment (4) transition (5) the treatment of existing stripping costs assets (6) removal of the illustrative example

  • IAS 16 – Accounting for production phase stripping costs in the mining industry

  • Mar 10, 2011

  • The Committee continued its re-deliberations discussing the staff's revised principle for capitalising production stripping costs, including proposed guidance on the apportionment of those costs between current (inventory/ expense) and future benefit (defer/capitalise). In addition, the Committee discussed a revised approach to depreciation and amortisation of the capitalised component.

  • Administrative matters – video of multi-ore mine in Australia

  • Mar 10, 2011

  • The IFRS Interpretations Committee and observers in the meeting room were shown a short video of the proposed development of a large, multi-ore mine in Australia, which is one of the world's largest ore bodies containing copper, gold, silver and uranium.

  • IAS 16 – Accounting for stripping costs in the production phase of a mine

  • Jan 06, 2011

  • The IFRS Interpretations Committee redeliberated its previous conclusions in light of comment letters received, agreeing to move forward with the project and discussing (1) whether to abandon the "stripping campaign" concept (2) whether to account for the asset under IAS 16 or IAS 38 (3) whether to remove the Illustrative Example.

All Related