IFRIC 17 Distributions of Non-cash Assets to Owners

Synopsis

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.

• Read the unaccompanied version of IFRIC 17

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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.