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IAS 33Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 33L4 · Expert

Documents

Group profile and file conventions

Memo

Group profile and file conventions

Selvane Group SA (fictitious entity) is the listed parent of a group and closes its consolidated accounts on 31 December 20X6. A disposed line of business is classified as a discontinued operation. File conventions: weighting in whole months out of 12, earnings per share rounded to two decimals (half up), comparisons made on the rounded earnings per share and control number of the dilution test set after preference dividends (rule of the standard: IAS 33, para. 42, which refers to the para. 12 adjustment). Tax rate applicable to interest: 25%, retained by assumption, the tax department not having yet confirmed the rate.

Weighted average number of shares schedule: tranches, events with no change in resources and adjustment factor

File of a listed group: basic and diluted earnings per share, retrospective restatements, presentation and disclosures (IAS 33)

8 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

Objective

In progress
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 / 5 steps done (review excluded)

Context

Selvane Group SA (fictitious entity), a listed parent, closes its consolidated accounts on 31 December 20X6. In 20X6 it made a rights issue with a bonus element, it has cumulative preference shares, options, a convertible bond and a contingent share agreement, and it disposed of a line of business. A 20X5 error was corrected retrospectively. The preparer builds the earnings per share file, which is submitted to a reviewer. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.

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 of the rights issue.
  • Restate the number of shares before the exercise of the rights.
  • 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 under the rights issue.

Documents in the file

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