IFRIC 17 Distributions of Non-cash Assets to Owners
Published November 2008. Effective 1 July 2009 (1 November 2009 for EU preparers).
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- Synopsis (including link to unaccompanied version of IFRIC 17)
- IFRSs referred to
Financial Reporting Faculty members only
The Interpretation refers to:
- Distributions of non-cash assets to owners of an entity in their capacity as owners
- Distributions where owners have a choice of receiving non-cash assets or a cash alternative.
It concludes that:
- A dividend should be recognised when it is appropriately authorised and is no longer at the discretion of the entity.
- The dividend should be measured at the fair value of the net assets to be distributed.
- Where a cash alternative is available, the entity should assess the probability of owners selecting either cash or the non-cash assets and measure the dividend accordingly based on fair values.
- An entity should recognise the difference between the dividend paid and the carrying amount of the assets distributed in profit or loss.
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Which version of the interpretation?
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IFRSs referred to by IFRIC 17
- IFRS 3 Business Combinations
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
- IFRS 7 Financial Instruments: Disclosures
- IFRS 10 Consolidated Financial Statements
- IFRS 13 Fair Value Measurement
- IAS 1 Presentation of Financial Statements
- IAS 10 Events after the Reporting Period
This page was last updated 22 January 2021.