• Details
    • Service: Audit, Financial Statement Audit, IFRS
    Type: Regulatory update
    Date: 2010/08/28

    Technical Accounting Advisory Services

    Growing numbers of countries are adopting International Financial Reporting Standards (IFRS). The benefits of the new standards include enhanced comparability and improved transparency of financial reporting.
    South Africa - Issues and insights - Articles and publications - IFRS Publications

    IFRS Briefing Sheet: Issue 207 - Draft Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine 

    This Briefing Sheet summarises Draft Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine. The draft interpretation in effect proposes component accounting for production stripping costs.
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    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.
     

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