# ASC 330-930: Inventory — Extractive Activities—Mining

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/330/930/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

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## ASC 330-930: Inventory — Extractive Activities—Mining

### Machine-generated study aids

```json
{
  "summary": "This subtopic governs how mining entities account for stripping costs — the costs of removing overburden and waste materials to access ore — incurred during the production phase of a mine. The core rule is that post-production-phase stripping costs are variable production costs that must be capitalized into the cost of the inventory (ore) extracted in the same period the stripping costs are incurred. Stripping costs incurred before the production phase (i.e., during development) are outside the scope of this subtopic.",
  "key_points": [
    "This Subtopic addresses accounting for stripping costs incurred in the production phase of mining operations (330-930-05-1).",
    "Stripping costs incurred during the production phase are variable production costs that should be included in the costs of the inventory produced (extracted) during the period the stripping costs are incurred (330-930-25-1).",
    "The guidance does not apply to stripping costs incurred before the production phase (330-930-15-2(a)).",
    "Scope otherwise follows the Extractive Activities—Mining Overall Subtopic scope in Section 930-10-15 (330-930-15-1).",
    "Because the costs attach to inventory extracted in the same period, they cannot be deferred and amortized over the mine's life or over future periods benefited."
  ],
  "categories": [
    "Inventory and PP&E",
    "Initial measurement",
    "Industry-specific",
    "Recognition"
  ],
  "audience_level": "intermediate",
  "student_note": "The exam trap is timing: only production-phase stripping costs are inventoriable under this subtopic, and they hit inventory in the period incurred — students often wrongly assume stripping costs can be capitalized as a long-lived asset and amortized over the ore body's life. Identify whether the mine has reached the production phase before applying the rule.",
  "related_topics": [
    "930-10",
    "930-330",
    "330-10",
    "930-805",
    "360-10"
  ],
  "key_concepts": [
    "stripping costs",
    "production phase",
    "variable production costs",
    "inventory costing",
    "overburden removal",
    "mining operations",
    "development phase costs"
  ]
}
```

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## ASC 330-930-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/330/930/#05-overview-and-background)

SEC content: no

##### [330-930-05-1](https://asc.understandingaccounting.org/asc/330/930/#330-930-05-1)

Pending content: no

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This Subtopic addresses the accounting for [stripping costs](https://asc.understandingaccounting.org/glossary/s/#stripping-costs "Stripping costs are costs incurred for the removal of overburden or waste materials for the purpose of obtaining access to an ore body that will be commercially produced.") incurred in the [production phase](https://asc.understandingaccounting.org/glossary/p/#production-phase "The production phase of a mine is deemed to begin when saleable minerals are extracted (produced) from an ore body, regardless of the level of production. However, the production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for the purpose of obtaining access to an ore body.") of mining operations.

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## ASC 330-930-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/330/930/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [330-930-15-1](https://asc.understandingaccounting.org/asc/330/930/#330-930-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 930-10-15, with specific transaction exceptions noted below.

#### Transactions

##### [330-930-15-2](https://asc.understandingaccounting.org/asc/330/930/#330-930-15-2)

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The guidance in this Subtopic does not apply to the following transactions:

1.  a
    
    [Stripping costs](https://asc.understandingaccounting.org/glossary/s/#stripping-costs "Stripping costs are costs incurred for the removal of overburden or waste materials for the purpose of obtaining access to an ore body that will be commercially produced.") incurred before the [production phase](https://asc.understandingaccounting.org/glossary/p/#production-phase "The production phase of a mine is deemed to begin when saleable minerals are extracted (produced) from an ore body, regardless of the level of production. However, the production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for the purpose of obtaining access to an ore body.").

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## ASC 330-930-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/330/930/#25-recognition)

SEC content: no

#### Production Phase Stripping Costs

##### [330-930-25-1](https://asc.understandingaccounting.org/asc/330/930/#330-930-25-1)

Pending content: no

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[Stripping costs](https://asc.understandingaccounting.org/glossary/s/#stripping-costs "Stripping costs are costs incurred for the removal of overburden or waste materials for the purpose of obtaining access to an ore body that will be commercially produced.") incurred during the [production phase](https://asc.understandingaccounting.org/glossary/p/#production-phase "The production phase of a mine is deemed to begin when saleable minerals are extracted (produced) from an ore body, regardless of the level of production. However, the production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for the purpose of obtaining access to an ore body.") of a mine are variable production costs that should be included in the costs of the inventory produced (that is, extracted) during the period that the stripping costs are incurred.