75 paragraphs found in INT 20
Identifying components of the ore body requires judgement. The Committee understands that an entity’s mine plan will provide the information required to allow these judgements to be made with reasonable …
This Interpretation also states that the stripping cost asset should be recognised as ‘part’ of an existing asset. ‘Part’ refers to the addition to, or enhancement of, the existing asset that relates to the stripping activity asset. The Committee took the …
The Committee decided that it is not necessary for the Interpretation to define whether the benefit created by the stripping activity is tangible or intangible in nature—this will be determined from the nature of the related underlying existing …
IAS 16 paragraph 16(b) states that the cost of an item of property, plant and equipment includes ‘any costs directly attributable to bringing the asset to the location and condition necessary ...’. Examples of the types of costs that the Committee would …
The Committee thought that it was important to be guided by the principle contained in paragraph 21 of IAS 16 when addressing incidental operations in the Interpretation. The Committee is aware that a number of activities are carried out simultaneously in …
The Committee noted that, when inventory is produced at the same time as the stripping activity asset is created, it may be difficult in practice to measure the separate cost of each benefit directly. The Committee agreed that an allocation basis would be …
In its discussions of the most appropriate allocation basis, the Committee rejected any basis that was based on sales values. The Committee considered that such a basis in the context of stripping costs would be inappropriate because it was not closely …
The Committee decided to require an allocation approach that was based on a relevant production measure, because a production measure was considered to be a good indicator of the nature of the benefits that are generated for the activity taking place in …
The Committee decided that the cost of the stripping activity asset should be depreciated or amortised over the expected useful life of the identified component of the ore body that is made more accessible by the activity, on a basis that best reflects …
The Committee decided that the principles of this Interpretation would also be applicable to an entity that subsequently accounts for its mine assets at revaluation, although the Committee noted that this method was seldom used. The Committee decided that …