IFRIC D23 would apply to all types of distributions of non-cash assets with one exception. It would not apply to a distribution of an asset to another entity within the same consolidated group. IFRIC D23 proposes that all types of distributions of non-cash assets would be measured at the fair value of the assets distributed. Therefore:
IFRIC D23 proposes:
- When an entity incurs an obligation to distribute non-cash assets to its owners (a dividend payable), it should measure the obligation at the fair value of the non-cash assets.
- When an entity settles the dividend payable, it should recognise any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable in profit or loss.
The Interpretation, if finalised, would apply prospectively, that is, to future distributions. The deadline for comments is 25 April 2008.