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EFRAG has completed its due process regarding the IFRIC 17 'Distribution of Non-cash Assets to Owners' and has submitted its Endorsement Advice Letter and Effects Study Report to the European Commission.
IFRIC 17 requires that:
(a) the liability for a dividend payable shall be recognised when the dividend has been appropriately authorised and is no longer at the discretion of the entity;
(b) the liability to distribute a non-cash asset to an owner shall be measured at the fair value of the assets to be distributed, and shall re-measure the carrying amount of the liability at the end of each reporting period if the fair value of the assets to be distributed has changed; and
(c) the entity shall recognise the difference between the amount of the liability and the carrying amount of the assets in profit and loss.
IFRIC 17 becomes effective for annual periods beginning on or after
Endorsement Advice on IFRIC 17