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) Waste removal (stripping) costs would be capitalised during the production phase of a surface mine, if certain criteria are met
B) This asset would be referred to as a stripping activity asset ('the asset')
C) The asset would initially be recognised at cost plus directly attributable overhead costs.
D) All of the options are correct

Question

Quizplus · Accepted Answer

All of the options are correct. The interpretation proposes that surface mine stripping costs can be capitalized during the production phase if certain criteria are met. This asset would be referred to as a stripping activity asset and initially recognized at cost plus directly attributable overhead costs.

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