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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