The key proposals are:
- production stripping costs that meet certain criteria would be capitalised as a component of the larger asset to which they relate
- subsequent to initial recognition, the component would be recognised at cost less depreciation/amortisation and less any impairment losses
- the period of depreciation/amortisation would be based on the expected useful life of the specific section of ore body that becomes directly accessible as a result of the stripping activities.
Comments were due to the IFRS Interpretations Committee by 30 November 2010.