Our views on IFRIC D23 on non-cash distributions

  • Deloitte Comment Letter Image

27 Apr 2008

Deloitte has submitted a Letter of Comments on IFRIC Draft Interpretation D23 'Distributions of Non-cash Assets to Owners'.

IFRIC D23 proposes that all types of distributions of non-cash assets to owners would be measured at the fair value of the assets distributed.

We agree with and support the consensus proposed in the Draft Interpretation to measure a liability to distribute non-cash assets as dividends to its owners at fair value, with any difference between the fair value of the liability and the carrying amount of the non-cash assets being recognised in profit or loss. We also agree that the entity should apply the requirements of IFRS 5 to non-current assets held for distribution to owners. However, we have a number of concerns with the consensus that are outlined in appendices to our letter.
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