Our Refining IFRS series aims to examine the complex, but unique, issues faced by mining and metals companies applying IFRS. These issues will be considered in the context of recent and current developments in the global mining and metals market place.
Proposed amendments to IFRS 11 Joint Arrangements
IFRS 11 Joint Arrangements became effective from 1 January 2013. This edition of IFRS Developments, summarises the proposed changes and explores some the potential implications for mining & metals entities.
Refining IFRS: implications for impairment testing
In this issue, we revisit the key requirements of impairment testing and highlight those areas where the greatest judgement is required.
Refining IFRS – Spin-off transactions - addressing the key financial reporting challenges
Mining and metals entities are seeking to optimise capital through ongoing appraisals of portfolios, including seeking to divest non-core assets, in order to release capital. In this issue of Refining IFRS, we explore some of these financial reporting challenges and the key areas of judgement.
Refining IFRS - Delivering capital projects - addressing the key accounting challenges
Managing the complexity of major capital projects in today’s mining and metals landscape has never been more challenging or critical. In addition to the enormous technical, commercial and funding challenges associated with projects of this nature, there are also a number of key accounting challenges. Learn more in this issue of Refining IFRS.
Applying IFRS - Revenue recognition in mining & metals
In this edition, you will find an analysis of the impact of the Boards’ proposal for mining and metals entities. The complexity of arrangements and the specific requirements of the proposed model mean that entities will need to familiarise themselves with the Exposure Draft so they can properly assess its potential impact.
Refining IFRS - Resource nationalism
This publication summarises the key interpretation of resource nationalism taxes and explores some of the practical challenges mining entities will face when determining how to apply its requirements.
Refining IFRS and Applying IFRS - joint arrangements
The new standards released by the IASB include important changes to the classification of, and accounting for, joint arrangements, as well as new terminology and the way in which common terms are now defined. These papers analyze the requirements of the new standards and the impact of these on mining & metals companies.
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Accounting for stripping costs update
This is an update on the July 2011 meeting of the IFRS Interpretations Committee where they considered the near final Interpretation on accounting for waste removal costs during the production phase of a surface mine. The paper gives a brief overview of the discussion.
Refining IFRS - UPDATE: Accounting for stripping costs - draft interpretation
This edition of refining IFRS provides a high-level overview of the discussions from the January 2011 Interpretations Committee meeting (pdf, 257.6kb) and outlines the issues that will be taken back to the March 2011 meeting. We also set out our understanding of the likely next steps and the anticipated timing of this interpretation being finalised.
Extractive activities project – the responses are in... With the IASB Discussion Paper-Extractive Activities (DP) now published, it's time to look at the feedback from preparers, users and regulators. This issue of Mining and Metals Refining IFRS provides a high-level overview of the responses to the DP, focusing on key themes, trends and issues raised .
Accounting for stripping costs during the production phase
This issue of Refining IFRS examines the issue of accounting for stripping costs incurred in the production phase of a mine. There is a lack of specific guidance in IFRS on this topic, but a draft interpretation has been released and this issue offers our observations and implications for your organization.
IASB discussion paper on extractive activities: implications for the mining and metals sector
This issue outlines some of the key practical implications Ernst & Young raised in its comment letter to the International Accounting Standards Board (IASB) on the extractive activities project team's working draft of the discussion paper on extractive activities.
Joint venturing to provide access to capital
This issue discusses joint ventures as a new source of capital for the sector in the wake of the credit crisis and the different forms they can take. Specifically, the paper covers considerations when accounting for the nature of these joint ventures.
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Accounting for stripping costs
This issue discusses how companies can account for the cost of removing overburden and other waste materials to access the ore from which minerals can be extracted. Specifically, the paper covers accounting for pre-production stripping costs vs. production stripping costs.
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Higher commodity prices raising value beyond proven and probable reserves
The second publication in this series discusses how mining and metals companies determine the economic value of the estimated cash flows beyond a mine's proven and probable reserves. We consider this issue specifically in the context of higher than historic average commodity prices.
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