IFRIC 17 Distributions of Non-cash Assets

IFRS Guide > IFRIC 17

IFRIC 17 Distributions of non-cash assets to owners

The International Financial Reporting Interpretations Committee (IFRIC) issued an interpretation to standardize practice in the accounting treatment of distribution of non-cash assets to owners.

The Interpretation clarifies that:
• a dividend payable should be recognised when the dividend is appropriately
authorised and is no longer at the discretion of the entity.
• an entity should measure the dividend payable at the fair value of the net assets to be
distributed.
• an entity should recognise the difference between the dividend paid and the carrying
amount of the net assets distributed in profit or loss.

The Interpretation also requires an entity to provide additional disclosures if the net assets
being held for distribution to owners meet the definition of a discontinued operation.
IFRIC 17 applies to pro rata distributions of non-cash assets except for common control
transactions.

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