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Description :
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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 has commenced discussions on its initial assessments of the technical merits and the cost/benefit implications of IFRIC 17 and expects to issue an Invitation to Comment on its initial assessments in early 2009.
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Working groups :
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EFRAG Technical Expert Group (EFRAG TEG) -
EFRAG Secretariat -
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Current Project Status :
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Published in Official Journal
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Efrag Output
No 'Efrag Output'
Comment Letters
No 'Comment Letters'
Other Input
No 'Other Input'
News Items
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