IAS 33 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Weighted average number of shares schedule: tranches, events with no change in resources and adjustment factor
Basic earnings per share of a listed company: numerator after the preference dividend and weighted average number with dated issue and repurchase
Section 1 of 9
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 33 workpaper
- Level
- Foundation
- Estimated time
- ≈ 60 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Valmeris SA (fictitious entity) closes its books on 31 December 20X6; its ordinary shares are traded on a regulated market. In 20X6 it issued ordinary shares for cash on 1 April, repurchased own shares on 1 October and declared a dividend on its preference shares. Management prepares basic earnings per share.
Assignment
Weighted average number of shares schedule for 20X6
Purpose of the workpaper
List the ordinary share movements and their dates, weight each tranche over time, restate events with no change in resources (bonus issue, reverse split, bonus element of a rights issue), assess contingently issuable shares and the weighting (judgments), then prepare the illustrative entries. Numbers, dates and prices are case data.
Questions of the file covered by this workpaper
- Weight the opening shares, the issue and the repurchase over time.
- Compute the weighted average number of ordinary shares.
- Record the issue of shares of 1 April.
- Record the repurchase of own shares of 1 October.
Documents in the file
Open the documents to pick out the relevant information.