Financial reporting in the mining industry: International Financial Reporting Standards

The mining industry is one of the world’s most global industries. Many countries now require companies to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS). Regulatory bodies in many other countries are converging national standards with IFRS. The move to adopt or harmonise with IFRS has advanced the transparency and comparability of financial statements around the world.

This edition of Financial reporting in the mining industry describes the financial reporting implications of IFRS across a number of areas selected for their particular relevance to the mining industry.

The International Accounting Standards Board (IASB) has formed an Extractive Activities working group; however, formal guidance on many issues facing mining companies is unlikely to be available for some years. Other developments taking place are the ongoing convergence with US GAAP and interest from the Securities and Exchange Commission (SEC)in how US GAAP should be applied to the mining industry.

This publication does not describe all IFRSs applicable to mining entities. The ever-changing landscape means management should conductfurther research and seek specific advice before acting on any of the more complex matters raised.

PwC remains committed to the mining industry. For more information or assistance, please do not hesitate to contact your local office or one of our specialist mining partners.