Digging into IFRS

What's new

Digging into IFRS - November 2011

What is the issue?

Stripping costs incurred once a mine is in production often provide benefits for current production and access to future production.The challenge has always been how to allocate the benefits and then determine what period costs are versus an asset that will benefitfuture periods. The IFRIC was developed to address current diversity in practice. Some entities have judged all stripping costs as a cost ofproduction, and some entities capitalise some or all stripping costs as an asset.

Previous IFRS Mining newsletters

2011-11-01 - Digging into IFRS - November 2011
2011-06-30 - Joint arrangements – understanding the changes
2011-05-01 - A new era of business combinations
2011-04-01 - Miners celebrate the new hedging proposals