The IFRIC released a draft Interpretation in January 2008 and in the light of the responses finalised
the Interpretation issued today, IFRIC 17 Distributions 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.
17 applies to pro rata distributions of non-cash assets except for common control transactions.
Recognising the difficulty that entities would face in recognising past distributions at their fair values the IFRIC
requires prospective application of the guidance. The Interpretation is effective for annual periods beginning on or after 1 July 2009. Earlier application is permitted.
IFRIC 17 Distributions of Non-cash Assets to Owners
is available for e
IFRS subscribers from today. Those wishing to subscribe to eIFRSs should visit the
online shop or contact:
IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730
Fax +44 (0)20 7332 2749
For more information on IFRIC 17, visit the
project Web pages.
Robert Garnett, Chairman, IFRIC
Telephone: +44 (0)20 7246 6410
Masashi Oki, Practice Fellow, IASB
Telephone:+44 (0)20 7246 6924