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IFRIC 20 — Stripping Costs in the Production Phase of a Surface Mine

Effective date:

Effective for fiscal years beginning on or after January 1, 2013.  Earlier application is permitted.

Published by the IASB:

October 2011

Included in Part I of CPA Canada Handbook:

December 2011

Overview

In surface mining operations, entities may find it necessary to remove mine waste materials (“overburden”) to gain access to mineral ore deposits. This waste removal activity is known as "stripping". There can be two benefits accruing to the entity from the stripping activity: usable ore that can be used to produce inventory and improved access to further quantities of material that will be mined in future periods.

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine considers when and how to account separately for these two benefits arising from the stripping activity, as well as how to measure these benefits both initially and subsequently.

History of IFRIC 20

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

October 19, 2011

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine issued

 

This new 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. IFRIC 20 applies to the costs incurred to remove mine waste materials ("overburden") to gain access to mineral ore deposits during the production phase of a surface mine.

The interpretation is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.

December 2011

Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Standards

Amendments under consideration

  • None

Correction list for hyphenation

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