IAS 33 · Case studies (Step 3 of 5)
Practical case
Altavia Holding SA, a fictitious listed company, consolidated IFRS financial statements, year end 31 December, amounts in euros. The facts and amounts are case data; conclusions come from the standard or from judgement and are flagged as such; amounts per share are rounded to two decimals (case convention) and weighting is in months.
L1 · Guided · Year N
Progressive case in four levels: (1) basic earnings for year N (numerator, cumulative preference dividends, weighted average number), (2) year N+1: bonus issue and restatement of the comparative, (3) diluted earnings and discontinued operations for N+1 (test, order, presentation), (4) year N+2: rights issue, contingent shares, a contract settled in shares or cash, classification of preference shares and reconciliations.
Altavia Holding SA is preparing the earnings per share of its consolidated statements for year N. The numerator must be established, the cumulative preference shares taken into account, the weighted average number of shares calculated and then basic earnings per share. The standard is announced at this level.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Altavia Holding SA, a fictitious listed company, consolidated IFRS financial statements, year end 31 December, amounts in euros. The facts and amounts are case data; conclusions come from the standard or from judgement and are flagged as such; amounts per share are rounded to two decimals (case convention) and weighting is in months.
Initial event · L1·Year N · Current stage
Altavia Holding SA is preparing the earnings per share of its consolidated statements for year N. The numerator must be established, the cumulative preference shares taken into account, the weighted average number of shares calculated and then basic earnings per share. The standard is announced at this level.
Pieces added
New period · L2·Year N+1 · Upcoming: unlocks after the current stage
New period · L3·Year N+1 (continued) · Upcoming: unlocks after the current stage
New period · L4·Year N+2 · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Supporting document
| Item | Amount |
|---|---|
| Consolidated profit for year N | €5,460,000 |
| of which share of non-controlling interests | €600,000 |
| Cumulative preference shares: dividend due for N (not declared, after tax) | €300,000 |
| Dividends paid during N in respect of N-1 (already deducted in N-1) | €280,000 |
| Parent's ordinary shares listed on a stock exchange | Yes |
First level: all the data is in the brief and the pieces of this level.
5 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Multiple choice · Recognition
Do Altavia Holding SA's consolidated statements fall within the scope of earnings per share, and why?
4 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references