FRSC Adopts New Interpretation on Stripping Costs (11-11)
November 2011
The Financial Reporting Standards Council (FRSC) has approved in November 2011, the adoption of IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, issued by the International Accounting Standards Board (IASB) in October 2011 as Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine.
This Interpretation applies to waste removal costs that are incurred in surface mining activity during the production phase of the mine (‘production stripping costs’) and provides guidance on the recognition of production stripping costs as an asset and measurement of the stripping activity asset.
An entity shall apply this Interpretation for annual periods beginning on or after January 1, 2013 prospectively. Earlier application is permitted.
The FRSC has submitted the Interpretation to the Board of Accountancy for approval.