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
Rights issue with a bonus element: adjustment factor, weighting of the year and restated comparative earnings per share
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
- Advanced
- Estimated time
- ≈ 60 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Hallorin SA (fictitious entity), a listed company, closes its books on 31 December 20X6. On 1 April 20X6 it made a rights issue at a price below the market price; in preparing the financial statements it also discovered an error in the 20X5 profit, corrected retrospectively. Management prepares basic earnings per share for 20X6 and the 20X5 comparative.
Assignment
Weighted average number schedule for 20X6 with the adjustment factor
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
- Compute the adjustment factor.
- Weight the two periods of 20X6 (before and after the exercise of the rights).
- Compute the weighted average number for 20X6.
- Record the issue of shares of 1 April 20X6.
Documents in the file
Open the documents to pick out the relevant information.