Entities engaged in surface mining often need to remove mine waste material (‘overburden’) to gain access to mineral ore deposits. The removal of such waste material results in a combination of ore and waste, which may contain some usable material, or it could instead allow the access to additional ore body.
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (‘IFRIC 20’) provides guidance on recognition of production stripping costs as an asset and the initial and subsequent measurement of the stripping activity asset.
In November 2011, EFRAG has issued an Invitation to Comment relating to the endorsement of IFRIC 20 for use in the European Union and European Economic Area. It is consulting both on its assessment of the IFRIC 20 against the technical criteria for the endorsement in the EU and on its initial assessment of the costs and benefits that would arise from the implementation and application of IFRIC 20 in the EU. EFRAG’s initial assessment is that IFRIC 20 satisfies the technical criteria for EU endorsement and EFRAG should therefore recommend its endorsement.
Comments are requested by 9 December 2011.