• Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Industry: Energy & Natural Resources, Mining
  • Type: Regulatory update
  • Date: 24/10/2011

IFRS In the Headlines

IFRS In the Headlines
In the Headlines (formerly IFRS Briefing Sheets) provide a timely update on International Financial Reporting Standards (IFRS) developments.

Accounting for production stripping costs changes (2011/33) 

This issue of In the Headlines discusses IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine, which was issued on 19 October 2011 and will be applicable for years ending on or after 1 January 2013, with early adoption permitted.


  • Surface mining companies will capitalise production stripping costs that benefit future periods, if certain criteria are met
  • Capitalisation, and the depreciation period, will depend on the identified component of the ore body to which the stripping activity relates
  • Any allocation of costs between inventory and the stripping activity asset will be based on a production measure
  • In our experience, only a handful of mining companies will be able to conclude that their current accounting is completely in line with the Interpretation
  • The Interpretation applies prospectively, and is applicable for years beginning on or after 1 January 2013.


IFRS Briefing Sheets - International financial reporting updates