Mining accounting

Mining accounting guides

• Mining accounting: the key IFRS issues4 minute readMining accounting explained: exploration under IFRS 6, development, stripping costs, depreciation, rehabilitation, stockpiles, provisional pricing, streams.
• Mining exploration and evaluation4 minute readMining exploration and evaluation under IFRS 6: what to capitalise, resources and reserves, feasibility studies, impairment, cash flows, and two policies.
• Stripping costs under IFRIC 204 minute readStripping costs under IFRIC 20: when waste removal in an open-pit mine creates a stripping activity asset, how costs are allocated and depreciated, an example.
• Mine development costs4 minute readMine development costs under IAS 16: what is capitalised after the decision to mine, borrowing costs, commissioning sales and the commercial production date.
• Depreciation of mining assets3 minute readMining depreciation explained: units of production over reserves, including resources, tonnes mined or milled, shorter-lived equipment and stockpiles.
• Mine closure and rehabilitation4 minute readMine closure and rehabilitation provisions: when they arise, what goes to the asset or to inventory, discounting, changes in estimate and long-term water care.
• Ore stockpiles and work in progress3 minute readOre stockpiles under IAS 2: what goes into their cost, measuring tonnes and grade, net realisable value, heap leach pads, metal in circuit, and classification.
• Mining impairment when commodity prices fall4 minute readMining impairment under IAS 36: triggers, cash-generating units, long-term metal prices, valuing resources beyond reserves, and reversals, with an example.
• Streaming and royalty arrangements4 minute readStreaming and royalty arrangements in mining: the upfront deposit as a contract liability, the financing component, reserve changes and royalties as debt.
• Provisional pricing on concentrate sales3 minute readProvisional pricing on concentrate sales: revenue when control passes, the receivable at fair value under IFRS 9, quotational periods, assays and TC/RCs.
• Mining joint arrangements4 minute readMining joint arrangements under IFRS 11: unincorporated and incorporated joint ventures, output taken by partners, revenue for joint operators, earn-ins.
• Mineral reserves and resources disclosures3 minute readMineral reserves and resources disclosures: JORC, NI 43-101 and S-K 1300, what IFRS requires, and how a reserve change flows into depreciation and impairment.

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About these guides

Each guide starts from an accounting issue mining companies actually face and works through it with numbers from the industry. 12 of 12 planned guides are published; more are added with every batch.