IAS 33Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 33 — Earnings per ShareL1 · L2 · L3

Basic earnings per share computation: attributable earnings, preference dividends and weighted average number

5 missions10 sections to document45 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

Check that the entity is within scope, start from the profit attributable to the parent, deduct preference dividends after tax (declared for non-cumulative shares, due for cumulative shares), take the weighted average number from the share schedule, compute basic earnings per share, document the judgment on the non-cumulative dividend and prepare the entry and the note. Amounts are case data; earnings per share is rounded to two decimals (case convention).

10 sections · 21 blocks · 2 calculations · 1 entry

IAS 33 §2
IAS 33 §9
IAS 33 §10
IAS 33 §12
IAS 33 §14
IAS 33 §16
IAS 33 §17
IAS 33 §18

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

5 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Basic earnings per share of a listed company: numerator after the preference dividend and weighted average number with dated issue and repurchase

Case tasks documented here

Compute the earnings attributable to the ordinary shareholders.
Compute basic earnings per share.

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
1,285,000
Non-cumulative preference dividends declared for the period (after tax)
Number
88,000
Cumulative preference dividends due for the period, declared or not (after tax)
Number
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
1,050,000 units
Per-share basis (one share)
Number
1 units
Preference dividend declared (amount recognised)
Number

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
1,197,000
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
1.14
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Debit Retained earnings ← Preference dividend declared (amount recognised) ; Credit Preference dividends payable ← Preference dividend declared (amount recognised)

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text
PREFERENCE_DIVIDEND_DECLARED_FOR_20X6

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Judgment documentedPass
Rationale writtenPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Bonus issue, reverse share split and cumulative preference shares: restatement of the comparative periods

Case tasks documented here

Compute the earnings attributable to the ordinary shares for 20X6 and 20X5.
Compute basic earnings per share for 20X6 and the restated figure for 20X5.
Record the non-cumulative preference dividend declared in December 20X6.

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
1,604,000
Non-cumulative preference dividends declared for the period (after tax)
Number
30,000
Cumulative preference dividends due for the period, declared or not (after tax)
Number
150,000
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
256,000 units
Per-share basis (one share)
Number
1 units
Preference dividend declared (amount recognised)
Number
30,000

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
1,424,000
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
5.56
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Account Debit Credit
Retained earnings 30,000
Preference dividends payable 30,000

Account	Debit	Credit
Retained earnings	30,000
Preference dividends payable		30,000

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text
BOARD_RESOLUTION_DECEMBER_FOR_20X6

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Judgment documentedPass
Rationale writtenPass

Assets: 0
Liabilities: 30,000
Profit or loss: 0
OCI: 0
Equity: -30,000

File and entity

Bonus issue, reverse share split and cumulative preference shares: restatement of the comparative periods

Case tasks documented here

Compute the earnings attributable to the ordinary shares for 20X6 and 20X5.
Compute basic earnings per share for 20X6 and the restated figure for 20X5.
Record the non-cumulative preference dividend declared in December 20X6.

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
1,290,000
Non-cumulative preference dividends declared for the period (after tax)
Number
Cumulative preference dividends due for the period, declared or not (after tax)
Number
150,000
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
240,000 units
Per-share basis (one share)
Number
1 units
Preference dividend declared (amount recognised)
Number

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
1,140,000
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
4.75
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Debit Retained earnings ← Preference dividend declared (amount recognised) ; Credit Preference dividends payable ← Preference dividend declared (amount recognised)

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text
CUMULATIVE_DIVIDEND_DUE_FOR_20X5

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Judgment documentedPass
Rationale writtenPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

File of a listed group: basic and diluted earnings per share, retrospective restatements, presentation and disclosures (IAS 33)

Case tasks documented here

Compute the earnings attributable to the ordinary shares, for continuing operations and in total.
Compute basic earnings per share for 20X6 (continuing operations and total) and for 20X5 (as published and restated).
Record the cumulative preference dividend for 20X5 declared in March 20X6.

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
6,380,000
Non-cumulative preference dividends declared for the period (after tax)
Number
Cumulative preference dividends due for the period, declared or not (after tax)
Number
300,000
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
4,870,000 units
Per-share basis (one share)
Number
1 units
Preference dividend declared (amount recognised)
Number
300,000

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
6,080,000
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
1.25
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Account Debit Credit
Retained earnings 300,000
Preference dividends payable 300,000

Account	Debit	Credit
Retained earnings	300,000
Preference dividends payable		300,000

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text
CUMULATIVE_SHARES_DUE_FOR_THE_PERIOD

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Judgment documentedPass
Rationale writtenPass

Assets: 0
Liabilities: 300,000
Profit or loss: 0
OCI: 0
Equity: -300,000

File and entity

File of a listed group: basic and diluted earnings per share, retrospective restatements, presentation and disclosures (IAS 33)

Case tasks documented here

Compute the earnings attributable to the ordinary shares, for continuing operations and in total.
Compute basic earnings per share for 20X6 (continuing operations and total) and for 20X5 (as published and restated).
Record the cumulative preference dividend for 20X5 declared in March 20X6.

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
7,500,000
Non-cumulative preference dividends declared for the period (after tax)
Number
Cumulative preference dividends due for the period, declared or not (after tax)
Number
300,000
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
4,870,000 units
Per-share basis (one share)
Number
1 units
Preference dividend declared (amount recognised)
Number

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
7,200,000
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
1.48
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Debit Retained earnings ← Preference dividend declared (amount recognised) ; Credit Preference dividends payable ← Preference dividend declared (amount recognised)

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text
CUMULATIVE_SHARES_DUE_FOR_THE_PERIOD

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Judgment documentedPass
Rationale writtenPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

Facts and data

Inputs

Facts: listed entity, consolidated or separate financial statements, classes of shares
Text
Terms of the preference shares: cumulative or not, dividend declared or due, period concerned
Text
Profit for the period attributable to the parent
Number
Non-cumulative preference dividends declared for the period (after tax)
Number
Cumulative preference dividends due for the period, declared or not (after tax)
Number
Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Number
Weighted average number of ordinary shares (from the weighted average schedule)
Number
Per-share basis (one share)
Number
Preference dividend declared (amount recognised)
Number

Supporting documents

Evidence

Documents obtained and referenced (articles, minutes, financial statements)
EvidenceRequired

Analysis of the scope and of the numerator

Analysis

IAS 33 §2IAS 33 §9IAS 33 §10

Points reviewed: numerator and denominator of basic earnings per share
ChecklistRequired
- Entity within the scope of the standard (securities traded in a public market or being issued)
- Earnings attributable to the ordinary shareholders of the parent
- Total earnings and, if presented separately, earnings from continuing operations
- Preference dividends deducted after tax
- Non-cumulative shares: dividends declared for the period
- Cumulative shares: dividends due for the period, declared or not
- Cumulative dividends paid or declared during the period for prior periods: not deducted
- Settlement differences on preference shares taken into account
- Denominator taken from the weighted average schedule

Earnings attributable to ordinary shares and basic earnings per share

Calculations

IAS 33 §9IAS 33 §10

Earnings attributable to ordinary shareholders (parent profit less preference dividends)
CalculationRequired
Profit for the period attributable to the parent ; − Non-cumulative preference dividends declared for the period (after tax) ; − Cumulative preference dividends due for the period, declared or not (after tax) ; − Excess paid on the settlement of preference shares, after tax (to deduct, IAS 33, para. 16)
Basic earnings per share (attributable earnings / weighted average number)
CalculationRequired
Earnings attributable to ordinary shareholders (parent profit less preference dividends) ; Per-share basis (one share) ; Weighted average number of ordinary shares (from the weighted average schedule)

Illustrative entries

Entries

Entry: preference dividend declared
Entry
Debit Retained earnings ← Preference dividend declared (amount recognised) ; Credit Preference dividends payable ← Preference dividend declared (amount recognised)

Judgment: non-cumulative preference dividend

Judgment

IAS 33

Timing of the deduction of the non-cumulative dividend
JudgmentRequired
Dividend declared for the period: deducted / Dividend not declared: not deducted
Professional judgment: for a non-cumulative share only the dividends declared for the period are deducted; the point at which a dividend counts as declared was discussed by the Interpretations Committee which closed in January 2012 without amending the standard, and no criterion is imposed.
Rationale: resolution, date of declaration and period concerned
Text

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Disclosures on basic earnings per share

Disclosure

IAS 33 §9IAS 33 §10

Points to complete in the note
ChecklistRequired
- Earnings attributable to ordinary shareholders, reconciled to the parent profit
- Preference dividends and other effects of preference shares deducted
- Weighted average number of ordinary shares used
- Basic earnings per share disclosed with the rounding convention
Draft note: basic earnings per share
Text

Conclusion

Attributable earnings, weighted average number, basic earnings per share, judgment and entry submitted to the reviewer
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References