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: Restated 20X5 comparative
Bonus issue, reverse share split and cumulative preference shares: restatement of the comparative periods
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
- Intermediate
- Estimated time
- ≈ 60 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Brevane Industries SA (fictitious entity), a listed company, closes its books on 31 December 20X6. In 20X6 it made a bonus issue, entered into a contract for a mandatorily convertible instrument, saw the conditions of an additional share issue met and issued shares for cash; it also has cumulative and non-cumulative preference shares. After the reporting date it decided a reverse share split. Management prepares basic earnings per share for 20X6 and the comparative.
Assignment
Weighted average number of shares schedule and restatements
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
- Restate the opening shares for the bonus issue.
- Weight the restated opening shares, the mandatorily convertible instrument, the contingent shares and the issue of 1 October.
- Compute the weighted average number before the reverse split.
- Restate the weighted average number of 20X6 for the reverse split.
- Restate the number of shares published for 20X5 for the bonus issue and then for the reverse split.
- Record the bonus issue by capitalisation of reserves.
- Do the mandatorily convertible instrument and the contingent shares enter the basic denominator, and from what date?
Documents in the file
Open the documents to pick out the relevant information.