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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IFRSs referred to by IFRIC 20
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