Browsing by Subject "IAS"

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Access status: Open Access ,
Prawne i ekonomiczne aspekty likwidacji kopalń węgla kamiennego w Polsce
(Wydawnictwa AGH, 2010) Jarosz, Jacek
The paper presents two methods of assessing closure cost of a mining operation in order to calculate the resources that need to be accumulated in a Mine Closure Fund (MCF), which is regarded as a reserve equity fund. The methods differ in the scope of mine closure activities that the law requires to be financed from the MCF. The first method is, in essence, based of the Accounting Law Act of 1994 (with subsequent amendments) and is currently used by some mining companies. In this method the algorithm used to estimate the cost of mine closure takes into account more activities than is the case in the second method. Subsequently, the cost of mine closure estimated using the first method is higher. The second method of mine closure cost estimation is used by some mining companies as a consequence of them applying International Accounting Standards (IAS). The standards are used by public listed companies and the companies that voluntarily decided to apply them. In the paper presented are the results of mine closure cost assessments done with the use of both methods for three operating mines. As it turns out, the costs of mine closures calculated in line with the IAS rules are substantially lower (as much as 15%), which allows the mines to lower the MCF premiums or shorten the time needed to accumulate the required funds. This is more favourable for the current operations but may give rise to concern as to the sufficiency of the accumulated funds to provide financing for proper mine closures.