Background (INT17_08-15_COMPmar20_07-21)

Sometimes an entity distributes assets other than cash (non-cash assets) as dividends to its owners^[1] acting in their capacity as owners. In those situations, an entity may also give its owners a choice of receiving either non-cash assets or a cash alternative. Constituents have requested guidance on how an entity should account for such distributions.

Australian Accounting Standards do not provide guidance on how an entity should measure distributions to its owners (commonly referred to as dividends). AASB 101 requires an entity to present details of dividends recognised as distributions to owners either in the statement of changes in equity or in the notes to the financial statements.