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:

Question

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

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