The ASB comments on international guidance on the exploration, evaluation and extraction of mineral resources

The International Public Sector Accounting Standards Board (IPSASB) recently issued two Exposure Drafts (EDs) as part of its broader natural resources project. The EDs proposed guidance on the exploration for, and evaluation of mineral resources, and on accounting for benefits that may arise from waste removal activities of a surface mine (also known as stripping costs). The proposed guidance is based on international private sector guidance, i.e. IFRS 6 on Exploration for and Evaluation of Mineral Resources and IFRIC 20 on Stripping Costs in the Production Phase of a Surface Mine.

No significant changes were considered necessary for the public sector. The proposals in the EDs were supported by local stakeholders, with some proposals to expand the explanation in the Basis for Conclusions on how the private sector guidance applies to the public sector.

The comment letter submitted to the IPSASB can be accessed here.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.