IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
Published October 2011. Effective 1 January 2013.
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Entities engaged in surface mining operations often need to ‘strip’ mine waste materials in order to gain access to mineral ore deposits. Two benefits are associated with such ‘stripping’:
- Usable ore which produces inventory, and
- Improved access to ore which will be mined in the future IFRIC 20 requires that:
- Costs of stripping which provide benefit in the form of inventory are accounted for under IAS 2C
- Costs of stripping which provide benefit in the form of improved access to ore are recognised as a non-current asset when certain criteria are met. Such an asset is initially measured at cost and subsequently carried at cost or revalued amount less depreciation / amortisation and impairment losses.
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|Annual period starts||Effective version of standard||Notes on amendments|
|On or after 1 January 2020||IFRIC 20 2020 Issued Standards||Includes amendment 1|
|1 January 2017 – 31 December 2019||IFRIC 20 2019 Required Standards||Does not include the amendment|
Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; The Issued Standards book assumes early application of all issued IFRSs.
For the latest version of the interpretation, and where the amendment is to be adopted early, refer to IFRIC 20 2020 Required Standards.
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IFRSs referred to by IFRIC 20
ED/2017/4 Property, Plant and Equipment – Proceeds before Intended Use was issued in June 2017. It is proposed to amend IFRIC 20 to require IAS 16 to be applied to stripping costs incurred in the development phase of a mine, rather than specifically explaining the accounting treatment of the costs in the IFRIC. The final standard is expected in Q1 2020.
This page was last updated 22 January 2020.
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