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 recognized when the dividend is appropriately
authorized 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 recognize 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
Accounting made easy, for FREE!
Access the contact form and send us your feedback, questions, etc. We are always welcome to help someone out. You can also contact us if you wish to submit your writing, cartoons, jokes, etc. and we will consider posting them to share with the world! The Facebook and LinkedIn groups are also good areas to find people interested in accounting like yourself, don’t hesitate to join as everyone of all levels are welcome to become part of the community.