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ICAI - IASB Exposure Draft on Stripping Costs in the production
November, 19th 2010

IASB Exposure Draft on Stripping Costs in the production phase of a Surface Mine (Comments to be received by November 26, 2010)

The International Accounting Standards Boards IFRS Interpretations Committee has issued this Exposure Draft on IFRIC interpretation Stripping Costs in the production phase of a Surface Mine containing proposed guidance on the accounting for stripping costs in the production phase of a surface mine.

The Committee was asked to consider how to account for stripping costs (the process of removing waste from a surface mine in order to gain access to mineral ore deposits) given the divergence in practice that exists.

The Committee has proposed that costs associated with a stripping campaign should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.

Invitation to comments
 
ASB invites comments on the said Draft from the public. The downloadable version of the draft is available http://www.ifrs.org/NR/rdonlyres/820A31D3-4A44-40EE-9B9B-EDC49B51CCAD/0/DIStrippingCostsAug10.pdf. Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than November 26, 2010. Comments can also be sent by e-mail at asb@icai.org or edcommentsasb@icai.org.

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