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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.

Basic earnings per share computation: attributable earnings, preference dividends and weighted average number: Total profit

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

8 documents8 sections to document
0 / 5 sections completed
Guided mode

Section 1 of 8

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
≈ 45 min
Progress
0 / 4 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

Basic earnings per share computation for 20X6

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 continuing operations and in total.
  • Compute basic earnings per share for 20X6 (continuing operations and total) and for 20X5 (as published and restated).
  • Record the cumulative preference dividend for 20X5 declared in March 20X6.

Documents in the file

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