IAS 33 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
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- Exams
Basic earnings per share computation: attributable earnings, preference dividends and weighted average number
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 8
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
- ≈ 45 min
- Progress
- 0 / 4 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
Basic earnings per share computation for 20X6
Purpose 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).
Questions of the file covered by this workpaper
- Compute the earnings attributable to the ordinary shareholders.
- Compute basic earnings per share.
Documents in the file
Open the documents to pick out the relevant information.