IFRIC 17 on distributions of non-cash assets
The International Financial Reporting Interpretations Committee has issued IFRIC 17 'Distributions of Non-cash Assets to Owners'.
IFRIC 17 Distributions of Non-cash Assets to Owners 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
- an entity to provide additional disclosures if the net assets being held for distribution to owners meet the definition of a discontinued operation.
- applies to pro rata distributions of non-cash assets except for common control transactions.
- is to be applied prospectively
- is effective for annual periods beginning on or after 1 July 2009. Earlier application is permitted.
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