IAS 33 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Basic earnings per share computation: attributable earnings, preference dividends and weighted average number: Basic earnings per share 20X6
Bonus issue, reverse share split and cumulative preference shares: restatement of the comparative periods
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
- Intermediate
- Estimated time
- ≈ 45 min
- Progress
- 0 / 5 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
Basic earnings per share computation and judgment on the non-cumulative dividend
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 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.
Documents in the file
Open the documents to pick out the relevant information.