ICAEW.com works better with JavaScript enabled.

IFRIC 17 Distributions of Non-cash Assets to Owners

IFRIC 17 addresses the accounting for dividends of non-cash assets, including those where there is a cash alternative.

Access the interpretation

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).

Summary

The Interpretation refers to:

  • Distributions of non-cash assets to owners of an entity in their capacity as owners.
  • Distributions where owners have a choice of receiving non-cash assets or a cash alternative. 

It concludes that:

  • A dividend should be recognised when it is appropriately authorised and is no longer at the discretion of the entity.
  • The dividend should be measured at the fair value of the net assets to be distributed.
  • Where a cash alternative is available, the entity should assess the probability of owners selecting either cash or the non-cash assets and measure the dividend accordingly based on fair values.
  • An entity should recognise the difference between the dividend paid and the carrying amount of the assets distributed in profit or loss.

Other resources

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

Browse the collections
Black woman working at computer
Technical Advisory Services

Our experienced advisors can help you with technical questions.

Get in touch
Young man reading in a library
Library and Information Service

Expert help with research and access to trustworthy, professional sources.