The IFRS Interpretations Committee Issued an Interpretation in Relation to the Accounting

question 16

Multiple Choice

The IFRS Interpretations Committee issued an interpretation in relation to the accounting for surface mine stripping costs (i.e. removal of rocks, soil and other waste materials to access the relevant mineral deposits) incurred during the production phase. The interpretation proposes:

• A) this asset would be referred to as a stripping activity asset ('the asset').
• B) the asset would initially be recognised at cost plus directly attributable overhead costs.
• C) waste removal (stripping) costs would be capitalised during the production phase of a surface mine, if certain criteria are met.
• D) all of the options are correct.

---

Definitions:

PTSD

Post-traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, leading to long-term repercussions.

Obsessive-Compulsive Reaction

An obsessive-compulsive reaction refers to repetitive and intrusive thoughts (obsessions) followed by ritualistic behaviors or mental acts (compulsions) that an individual feels driven to perform.

Compulsion

An irresistible urge to perform an act, often repetitively, driven by anxiety or obsessive thoughts.

Obsession

Persistent, intrusive, and unwanted thoughts, images, or urges that cause distress or anxiety.