IFRIC released for public comment a draft Interpretation, D23 - Distributions of Non-cash Assets to Owners. The proposed Interpretation addresses how an entity should measure an obligation to distribute non-cash assets to its owners. Also, when an entity settles the dividend payable, how should it account for any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable?
IFRIC D23 would apply to all types of distributions of non-cash assets with one exception. It would not apply to a distribution of an asset to another entity within the same consolidated group.
IFRIC D23 proposes that all types of distributions of non-cash assets would be measured at the fair value of the assets distributed. The IFRIC proposes that the guidance should be applied only to future distributions because it recognises the difficulty entities would face in recognising past distributions at their fair values.
Deadline for comment is 25 April 2008.
About IFRIC D23
Press release
© IASB - International Accounting Standards Board
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