IFRIC issued an Interpretation that will standardise practice in the accounting treatment of distribution of non‑cash assets to owners.
IFRIC issued an Interpretation that will standardise practice in the accounting treatment of distribution of non‑cash assets to owners.
The Interpretation clarifies that:
Ø a dividend payable should be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity.
Ø an entity should measure the dividend payable at the fair value of the net assets to be distributed.
Ø an entity should recognise the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss.
Ø an entity to provide additional disclosures if the net assets being held for distribution to owners meet the definition of a discontinued operation.
IFRIC 17 applies to pro rata distributions of non-cash assets except for common control transactions. It is to be applied prospectively and is effective for annual periods beginning on or after 1 July 2009. Earlier application is permitted.
Press release
© IASB - International Accounting Standards Board
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article