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IFRIC 17 - Distributions of Non-cash Assets to Owners


The IFRIC issued D23 Distributions of Non-cash Assets to Owners in January 2008. D23 provides guidance on how an entity should measure distributions of assets other than cash when it pays dividends to its owners acting in their capacity as owners. Existing IFRS literature is silent on this issue.

In November 2008, the IFRIC finalised its deliberations on D23 and issued IFRIC 17 Distributions of Non-cash Assets to Owners. In summary, IFRIC 17 requires distributions of non-cash assets to owners to be measured at the fair value of the item(s) distributed. Any difference between the distribution and the carrying amount of the item(s) distributed is recognised in profit and loss. IFRIC 17 does not apply to common control transcations and neither does it apply to distributions within the same group in which the assets being distributed are controlled by the same party or parties before and after the distribution. IFRS 5 Non-current Assets held for Distribution and Discontinued Operations has been amended to include within its scope non-current assets (or disposal groups) held for distribution to owners. IFRIC 17 shall be applied propectively for annual periods beginning on or after I July 2009. Earlier application is permitted.

EFRAG issued its final endorsement advice on the Interpretation in May 2009, which has since been published in the Official Journal.

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