Exploration for and Evaluation of Mineral Resources & Stripping Costs in the Production Phase of a Surface Mine
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We are seeking feedback on:
These proposals are relevant to Tier 1 and Tier 2 public benefit entities (PBEs). |
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What is changing and why?
In New Zealand, PBE Standards for Tier 1 and Tier 2 PBEs are primarily based on International Public Sector Accounting Standards (IPSAS) issued by the IPSASB.
The IPSASB recently issued IPSAS 50 Exploration for and Evaluation of Mineral Resources, based on IFRS 6 Exploration for and Evaluation of Mineral Resources (issued by the IASB). IPSAS 50 provides guidance on accounting for exploration and evaluation expenditures, including the recognition, measurement and presentation of exploration and evaluation assets.
At the same time, the IPSASB issued Stripping Costs in the Production Phase of a Surface Mine (Amendments to IPSAS 12 Inventories), based on IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (issued by the IASB). These amendments provide interpretive guidance on when to capitalise or expense costs incurred to remove waste material in surface mining operations.
About this consultation
We are not aware of New Zealand PBEs directly engaged in exploration and evaluation of minerals or operating surface mines. However, by incorporating the above listed IPSASB standards into the New Zealand PBE suit of standards we aim to future-proof the standards in a prospective manner.
Read the Exposure Draft (Proposed PBE IPSAS 50 Exploration for and Evaluation of Mineral Resources)
Introducing these changes to the PBE Standards will provide greater certainty and clarity for preparers, reducing cost associated with uncertainty and enabling better decision-making when assessing the financial reporting implications of these types of activities. This will mean PBE entities who may start engaging in these types of activities will benefit from:
- Enhanced guidance, as there is no specific guidance on exploration and evaluation activities or on treatment of stripping cost in PBE Standards;
- Appropriate accounting policy development for exploration and evaluation assets without following the strict hierarchy of PBE IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors;
- Alignment of PBE Standards and NZ IFRS Standards for mixed group entities including increased harmonisation with Australia (given Australian not-for-profit entities report under IFRS standards); and
- Alignment of PBE Standards with IPSAS requirements for entities which may want to enter global joint arrangements.
The standards are based on existing NZ IFRS Standards and have very limited application in New Zealand. As such, we do not expect any PBE to incur any additional costs where they do not engage in exploration and evaluation of minerals or operate surface mines.
How to provide feedback
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We are seeking comments on the following questions: Q1. Do you agree with the proposed standard PBE IPSAS 50 Exploration for and Evaluation of Mineral Resources? Read the Exposure Draft here Q2. Do you agree with the proposed amendments to PBE IPSAS 12 Inventories? Read the Exposure Draft here Q3. Do you have views on the costs and benefits of either of these proposals? Q4. Do you agree with the proposed mandatory date for both of these proposals? We propose mandatory date of 1 January 2027 with application permitted for accounting periods that begin before that day. This proposed mandatory date aligns with the IPSASB pronouncements. Q5. Do you have any other feedback on either of these proposals? |
You can provide feedback:
- via the form below (where you can upload a PDF) or
- by emailing your formal or informal comments to accounting@xrb.govt.nz.
The consultation closes on Tuesday 30 September 2025.
All submissions will be published on the XRB website unless confidentiality is requested. If you object to the release of any information in your submission, please identify the specific parts and the reasons under the Official Information Act 1982. We reserve the right not to publish defamatory submissions. Submissions are subject to the Official Information Act 1982 and the Privacy Act 2020. The XRB will handle personal information in accordance with these Acts.