IAS Plus Newsletter – New Interpretation on non-cash distributions

Published on: 02 Dec 2008

On 27 November 2008, the International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 17 Distributions of Non-cash Assets to Owners. The Interpretation provides guidance on the appropriate accounting treatment when an entity distributes assets other than cash as dividends to its shareholders.

The specific questions addressed in the Interpretation are:

  • when should the entity recognise the dividend payable?
  • how should the entity measure the dividend payable?
  • when the entity settles the dividend payable, how should it account for any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable?


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