IAS 33 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Retrospective restatement and presentation of earnings per share: comparatives, discontinued operations and reconciliations: 20X6 presentation
File of a listed group: continuing and discontinued operations, contingent shares, written put, share or cash settlement, presentation and disclosures
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
- Expert
- Estimated time
- ≈ 60 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Ardolia Group SA (fictitious entity), a listed parent, closes its consolidated accounts on 31 December 20X6. The group disposed of a line of business (discontinued operation), made a rights issue in April, has a contingent share agreement, put options written on its own shares and bonds settleable in shares or cash; a share issue took place after the reporting date. Management prepares earnings per share and the disclosures.
Assignment
Earnings per share, reconciliation of denominators and restated comparative
Purpose of the workpaper
Identify the events that change the number of shares with no change in resources, restate the number of shares and earnings per share of prior periods (adjustment factor, corrections of errors), compute earnings per share from continuing and discontinued operations, reconcile the basic and diluted numbers of shares, document the judgment on the price before detachment and prepare the draft presentation and note. Amounts and factors are case data; earnings per share is rounded to two decimals (case convention).
Questions of the file covered by this workpaper
- What is the control number of the dilution test, which instruments are to be examined and how should earnings per share be presented?
- Compute basic earnings per share from continuing operations and the numerator adjustment after tax for the contract settleable in shares or cash.
- Reconcile the basic denominator to the diluted denominator by class of instrument.
- Compute basic and diluted earnings per share from discontinued operations.
- Compute total earnings per share and restate the 20X5 comparative for the adjustment factor of the rights issue.
- What must be presented on the face of the income statement and disclosed in the notes (reconciliations, antidilutive instruments, transactions after the reporting date)?
Documents in the file
Open the documents to pick out the relevant information.