The IFRS Interpretations Committee issued an interpretation in relation to the accounting for surface mine stripping costs (i.e. removal of rocks, soil and other waste materials to access the relevant mineral deposits) incurred during the production phase. The interpretation proposes:
A) this asset would be referred to as a stripping activity asset ('the asset').
B) the asset would initially be recognised at cost plus directly attributable overhead costs.
C) waste removal (stripping) costs would be capitalised during the production phase of a surface mine, if certain criteria are met.
D) all of the options are correct.

Question

Quizplus · Accepted Answer

The interpretation proposes that the asset be referred to as a stripping activity asset and initially recognised at cost plus directly attributable overhead costs. Waste removal costs would be capitalised during the production phase if certain criteria are met. Therefore, all options A, B, and C are correct.

The IFRS Interpretations Committee Issued an Interpretation in Relation to the Accounting