IASB | Stripping Costs in the Production Phase of a Surface Mine

www.ifrs.org

The IFRS Interpretations Committee of IASB, published 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 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.

The full proposal (DI/2010/1) is open for comment until November 30 and can be accessed under the “Comment on a Proposal” section of www.ifrs.org