TaxTMI 
TaxTMI 
OVERBURDEN REMOVAL COST (REVISED)
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.... measurement and assignment of Overburden Removal Cost and the presentation and disclosure in cost statements. 2. Objective The objective of this standard is to bring uniformity, consistency in the principles, methods of determining and assigning Overburden Removal Cost with reasonable accuracy. 3. Scope The standard shall be applied to cost statements which require classification, measurement, assignment, presentation and disclosure of Overburden Removal Cost including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. Any term not defined in this Standard shall have the same meaning and expression as set out in the Glossary of Terms issued by the Co....
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....rt term and long term borrowings: 2. Financing Charges in respect of finance leases and other similar arrangements: and 3. Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest costs. The terms Interest and financing charges, finance costs, and borrowing costs are used interchangeably. 4.9 Mines overheads: indirect costs involved in the mining process for rendering services. This relates to the activities of both Mineral extraction and Overburden Removal. 4.10 Mining Plan: It is the plan expected to provide information required to measure the stripping activity with reasonable consistency. 4.11 Overheads: O....
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....dically, at least every five years, to take into account changes in geological factors such as actual behavior of the soil and the Ore body. The ratio shall be reviewed immediately if the geological factors alter radically, for example due to earthquake. The reported quantity of Overburden is considered in cost statement where the variance between the reported quantity and the measured quantity is within the permissible limits. Reported quantity is the quantity of overburden that is necessary corresponding to actual quantity of mineral raised. For example, 3:1 stripping ratio means that mining one Ton of ore will require mining three cubic meters of waste rock (overburden). 4.19 Advance Stripping: Advance Strippin....
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....ping ratio for each year in the cost statement. The difference, if any with the financial statement, shall be shown in the reconciliation statement.^[2] 5.6. Overburden shall be measured by multiplying the number of trips undertaken by equipment for Overburden removal or by any electronic mode. Measurement at regular intervals may be carried out by volume/ physical verification to arrive at fair quantity of overburden removed. Final assessment will be made based on scientific methodology. 5.7. Current ratio is determined by dividing the actual overburden removed (net quantity after due adjustment for opening & closing advance stripping quantity) with the actual production of mineral including adjustment for mineable quanti....
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....irements of a cost accounting standard or a change would result in a more appropriate preparation or presentation of cost statements of an enterprise. 6. Assignment of costs 6.1 Direct cost of overburden removal shall be assigned to the overburden removal activity. 6.2 The cost for equipment shall be assigned in the ratio of machine hours actually engaged for mineral and overburden removal or any other appropriate method that apportions the cost in an equitable manner. 6.3 Administrative overheads and other indirect expenses shall be apportioned to mineral and overburden on the basis of ratio of actual mineral produced and overburden removed during the period or on the basis of actual machine hours engaged for ....