To address the gap in the IPSAS literature on accounting for natural resources, the IPSASB issued a consultation paper in May 2022 and the IPSASB continues to develop principles for the recognition and measurement of natural resources, with the targeted publication of an exposure draft in the second half of 2024. However, following feedback received on the consultation paper concerning the lack of guidance on specific activities related to mineral resources, this is being addressed first with the release of two exposure drafts for public comment:

• ED 86 Exploration for and Evaluation of Mineral Resources proposes a standard on accounting for the costs incurred in the exploration and evaluation of mineral resources, based on the selection of an accounting policy specifying which expenditure should be recognised as exploration and evaluation assets. ED 86 is aligned with the private sector requirements in IFRS 6 Exploration for and Evaluation of Mineral Resources with limited changes for the public sector context.
• ED 87 Stripping costs in the Production Phase of a Surface Mine (Amendments to IPSAS 12) proposes adding an authoritative appendix to IPSAS 12 Inventories. The proposed guidance clarifies when to capitalise or expense costs incurred to remove waste material in surface mining operations. ED 87 is aligned with the guidance in IFRIC 20 Stripping costs in the Production Phase of a Surface Mine with limited changes for the public sector context.

Comments on the exposure drafts are requested by 31 May 2024. Please click for additional information and access to the drafts in the press release on the IPSASB website.