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- 2023 Issued Standards – IFRIC 20
The IFRIC Interpretations are available in the 2023 Issued Standards, which include all amendments issued up to and including 1 January 2023.
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Summary
Entities engaged in surface mining operations often need to ‘strip’ mine waste materials in order to gain access to mineral ore deposits. Two benefits are associated with such ‘stripping’:
- Usable ore which produces inventory.
- Improved access to ore which will be mined in the future IFRIC 20 requires that:
- Costs of stripping which provide benefit in the form of inventory are accounted for under IAS 2C.
- Costs of stripping which provide benefit in the form of improved access to ore are recognised as a non-current asset when certain criteria are met. Such an asset is initially measured at cost and subsequently carried at cost or revalued amount less depreciation / amortisation and impairment losses.
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