{"entries":[{"key":"LX.IAS33.000001","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DENOMINATOR_EMPHASIS","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-objective"},"references":["IAS 33 §1"],"exercise":{"prompt":{"fr":"","en":"An analyst compares the earnings per share of several entities over two years. Why does IAS 33 stress the denominator of the calculation?","es":""},"explanation":{"fr":"","en":"Rule to remember: IAS 33 stresses the denominator because the number of shares moves and conditions the comparability of earnings per share (IAS 33).","es":""},"common_error":{"fr":"","en":"Thinking that profit alone differentiates two earnings per share figures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit is already standardised by other standards, so the number of shares remains the main comparison difficulty","es":""},"correct":false,"feedback":{"fr":"","en":"The numerator raises questions too (preference dividends, for instance); the standard stresses the denominator without treating profit as settled (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The denominator used is the number of shares in issue at the reporting date, easier to check than an average","es":""},"correct":false,"feedback":{"fr":"","en":"The standard uses a weighted average over the period, not the closing number; the emphasis on the denominator serves comparability (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The number of shares moves during a period and must be taken on a comparable basis across entities and periods","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The denominator is used to split the dividend among the entity's different classes of shares","es":""},"correct":false,"feedback":{"fr":"","en":"The denominator counts shares to bring profit down to the share; it does not split a dividend (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000002","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"COMPARABILITY_SIZE_TRUE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-objective"},"references":["IAS 33 §1"],"exercise":{"prompt":{"fr":"","en":"Standardised earnings per share makes it possible to compare the performance of entities of different size.","es":""},"explanation":{"fr":"","en":"Rule to remember: by bringing profit down to the share, the standard serves comparison between entities and between periods (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing an absolute profit figure is enough to compare two companies.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000003","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.ENTITIES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHO_APPLIES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-scope"},"references":["IAS 33 §2"],"exercise":{"prompt":{"fr":"","en":"Four fictitious entities have different profiles. Which one must present earnings per share in its financial statements?","es":""},"explanation":{"fr":"","en":"Rule to remember: the test covers trading in a public market or filing for a public issue of ordinary shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Extending the scope to any subsidiary of a listed group.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Pelmar SA, which has filed with the regulator to issue its first ordinary shares to the public","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nolven SA, a private company whose activity is financed by bank loans and whose securities are not traded","es":""},"correct":false,"feedback":{"fr":"","en":"No security is traded or heading for a public issue: the scope test is not met (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Orbane SAS, an unlisted subsidiary of a listed group, which does not issue securities to the public and whose securities are not traded","es":""},"correct":false,"feedback":{"fr":"","en":"For its own statements, Orbane does not meet the test merely because its parent is listed; the parent's test applies to the consolidated statements (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Quivrel SARL, a private company whose securities are held by its three partners and are not traded","es":""},"correct":false,"feedback":{"fr":"","en":"Securities held by a few partners without public trading or an issue filing do not meet the test (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000004","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.ENTITIES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"IN_OR_OUT_OF_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"example"},"references":["IAS 33 §2"],"exercise":{"prompt":{"fr":"","en":"Classify each situation according to whether the financial statements concerned fall within the scope of IAS 33 on the facts given.","es":""},"explanation":{"fr":"","en":"The test in (IAS 33) is assessed for the entity (traded securities or filing for a public issue) and, in consolidation, for the parent.","es":""},"common_error":{"fr":"","en":"Mixing the parent's situation with the subsidiary's.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Within scope","es":""}},{"id":"c2","text":{"fr":"","en":"Outside scope on these facts","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A company whose ordinary shares are traded on a stock exchange","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"A private company in the process of filing its financial statements with a regulator for a first public issue","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Consolidated statements of a group whose parent has ordinary shares traded in a public market","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"A company whose securities are held by three partners, with no trading or plan for a public issue","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Consolidated statements of a group whose parent has neither traded securities nor a filing under way","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000005","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.ENTITIES","IAS33.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SCOPE_AND_OBJECTIVE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-scope"},"references":["IAS 33 §1","IAS 33 §2"],"exercise":{"prompt":{"fr":"","en":"Among these four statements on the purpose and scope of IAS 33, spot the erroneous ones.","es":""},"explanation":{"fr":"","en":"Rule to remember: the standard frames the ratio's calculation and presentation; scope is judged on the entity's securities (or the parent's in consolidation) (IAS 33).","es":""},"common_error":{"fr":"","en":"Waiting for actual listing.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The standard prescribes how to determine and present earnings per share.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"For consolidated statements, the scope test is assessed at the parent's level.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"An entity must wait until its shares are traded before applying the standard: filing an issue file is not enough.","es":""},"erroneous":true,"correction":{"fr":"","en":"Filing, or being in the process of filing, financial statements for a public issue of ordinary shares already meets the test (IAS 33).","es":""}},{"id":"s4","text":{"fr":"","en":"The standard sets the amount of profit of the entities within its scope.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard frames the determination and presentation of earnings per share; it does not set profit (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000006","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.SEPARATE_CONSOLIDATED"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"LIMIT_TO_CONSOLIDATED","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-consolidated"},"references":["IAS 33 §4"],"exercise":{"prompt":{"fr":"","en":"Havrel Holding, a listed parent, publishes consolidated and separate statements. What may it do with the earnings per share information?","es":""},"explanation":{"fr":"","en":"Rule to remember: an entity presenting consolidated and separate statements may limit earnings per share disclosure to the consolidated figures (IAS 33).","es":""},"common_error":{"fr":"","en":"Reversing the option and reserving it for the separate statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Present it in the separate statements and remove it from the consolidated statements, which bring several entities together","es":""},"correct":false,"feedback":{"fr":"","en":"The option runs the other way: the information may be limited to the consolidated figures (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Limit it to the consolidated figures, without repeating it in the separate statements","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Present it in both sets of statements, limitation to a set of statements being reserved for subsidiaries","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in (IAS 33) reserves the limitation for subsidiaries: an entity presenting both sets may limit itself to the consolidated figures.","es":""}},{"id":"D","text":{"fr":"","en":"Replace it, in both sets of statements, with a simple mention of the year's dividend per share","es":""},"correct":false,"feedback":{"fr":"","en":"Dividend per share is not earnings per share; the standard does not allow this replacement (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000007","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.SEPARATE_CONSOLIDATED","IAS33.SCOPE.ENTITIES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SEPARATE_REPETITION_AVOIDED","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS33.000001","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"judgment"},"references":["IAS 33 §2","IAS 33 §4"],"exercise":{"prompt":{"fr":"","en":"A listed parent presenting consolidated and separate statements may, under IAS 33, choose to limit earnings per share disclosure to the consolidated figures without repeating it in its separate statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: when both sets of statements are presented, the information may be limited to the consolidated figures (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that each set of statements carries a separate, cumulative obligation.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000008","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"POTENTIAL_SHARE_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-ordinary"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"Zandel SA has issued several instruments. Which one is a potential ordinary share under IAS 33?","es":""},"explanation":{"fr":"","en":"Rule to remember: an instrument that may entitle its holder to ordinary shares, such as a warrant, is a potential ordinary share (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Treating every security other than the ordinary share as a potential share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fixed-dividend preference shares, not convertible, held by a pension fund","es":""},"correct":false,"feedback":{"fr":"","en":"Without any right to ordinary shares, they are not potential shares (IAS 33, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"A floating-rate bank loan, repayable in cash at the maturity set in the contract","es":""},"correct":false,"feedback":{"fr":"","en":"A loan repayable in cash does not entitle its holder to ordinary shares (IAS 33, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"Warrants allowing subscription for ordinary shares at a price fixed in advance","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The ordinary shares already in issue, held by the company's founding shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"These are already ordinary shares in issue, not instruments that could become so (IAS 33, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000009","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"DEFINITION_TERMS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-ordinary"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"Match each IAS 33 term to its definition.","es":""},"explanation":{"fr":"","en":"The definitions in paragraph 5 set the vocabulary of the whole standard (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Confusing the warrant, a purchase right, with the convertible bond.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Ordinary share","es":""}},{"id":"l2","text":{"fr":"","en":"Warrants","es":""}},{"id":"l3","text":{"fr":"","en":"Contingently issuable shares","es":""}},{"id":"l4","text":{"fr":"","en":"Antidilution","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Shares issuable for little or no consideration when the conditions of an agreement are met","es":""}},{"id":"r4","text":{"fr":"","en":"Increase in earnings per share (or decrease in loss per share) under the assumption of conversion or exercise","es":""}},{"id":"r1","text":{"fr":"","en":"Equity instrument subordinate to all other classes","es":""}},{"id":"r2","text":{"fr":"","en":"Instruments giving the right to purchase ordinary shares","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000010","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"CLASSIFY_INSTRUMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"example"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"Classify each Zandel SA instrument: ordinary share, potential ordinary share, or neither.","es":""},"explanation":{"fr":"","en":"A potential ordinary share may entitle its holder to ordinary shares; a cash-settled payable or a preference share with no conversion does not (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Placing securities of any class other than ordinary among the potential shares.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Ordinary share","es":""}},{"id":"c2","text":{"fr":"","en":"Potential ordinary share","es":""}},{"id":"c3","text":{"fr":"","en":"Neither","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The issued equity shares, subordinate to all other classes","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"A bond the holder may exchange for ordinary shares","es":""},"category":"c2"},{"id":"i3","text":{"fr":"","en":"Shares promised to managers if sales reach a target set in the agreement","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"A trade payable due in euros in thirty days","es":""},"category":"c3"},{"id":"i5","text":{"fr":"","en":"Preference shares redeemable in cash, with no conversion right","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000011","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"DILUTIVE_EFFECT_LABEL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-dilution"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"At Zandel SA, basic earnings per share is €0.80. Were the convertible bonds assumed converted, it would fall to €0.74. What is the effect of this assumption?","es":""},"explanation":{"fr":"","en":"Rule to remember: a conversion assumption that lowers earnings per share is dilutive (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Judging the effect from the number of shares instead of earnings per share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An antidilutive effect, because conversion would increase the number of shares in issue","es":""},"correct":false,"feedback":{"fr":"","en":"The label follows earnings per share: it falls, so the effect is dilutive (IAS 33, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"A neutral effect, because the convertible bond remains debt until it is converted","es":""},"correct":false,"feedback":{"fr":"","en":"The conversion assumption exists precisely to measure the potential effect before any actual conversion (IAS 33, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"An accretive effect, because the hypothetical earnings per share is below the basic figure","es":""},"correct":false,"feedback":{"fr":"","en":"A fall in earnings per share is dilution; antidilution is a rise (IAS 33, para. 5).","es":""}},{"id":"D","text":{"fr":"","en":"A dilutive effect, because earnings per share falls","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000012","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ORDINARY_RANK_TRUE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-ordinary"},"references":["IAS 33 §6"],"exercise":{"prompt":{"fr":"","en":"Ordinary shares participate in profit for the period after the other classes of shares, such as preference shares.","es":""},"explanation":{"fr":"","en":"Rule to remember: the ordinary share is served after the other classes (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that the ordinary share ranks first.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000013","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"POTENTIAL_NOT_AUTOMATICALLY_DILUTIVE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"pitfalls"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"A potential ordinary share is dilutive simply because it appears in the entity's capital structure.","es":""},"explanation":{"fr":"","en":"Rule to remember: \"potential\" describes the instrument; \"dilutive\" describes the effect on earnings per share (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Merging the nature of the instrument with its effect.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000014","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PARTICIPATING"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PARTICIPATING_NOTIONAL_ALLOCATION","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-participating"},"references":["IAS 33 §6"],"exercise":{"prompt":{"fr":"","en":"Marvel SA has two classes of equity instruments that participate in profit: ordinary shares and profit-sharing certificates that receive an additional share of profit. Which reasoning does the lesson adopt, as context (a Committee staff paper, not a rule of IAS 33), for the ordinary shares' earnings per share?","es":""},"explanation":{"fr":"","en":"Rule to remember: the ordinary share is served after the other classes (IAS 33); the notional allocation of profit among classes is background reasoning drawn from a Committee staff paper, not a rule of IAS 33.","es":""},"common_error":{"fr":"","en":"Attributing all profit to the ordinary shares without regard for the other classes' rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit for the period is attributed in full to the ordinary shares, the profit-sharing certificates being treated as a finance cost of the entity","es":""},"correct":false,"feedback":{"fr":"","en":"This background reasoning does not take participating instruments out of the sharing: profit is allocated notionally among classes.","es":""}},{"id":"B","text":{"fr":"","en":"Profit for the period is allocated notionally among the classes according to their rights, and the ordinary shares' share is used","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The certificates are ignored until the general meeting has declared a dividend in their favour","es":""},"correct":false,"feedback":{"fr":"","en":"The notional reasoning allocates the period's profit among classes, without waiting for a declaration.","es":""}},{"id":"D","text":{"fr":"","en":"A rate for splitting profit among classes, the same for the entities concerned, is adopted as a rule","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation follows each class's own rights, not a single rate presented as a rule.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000015","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PARTICIPATING"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PARTICIPATING_NO_FIXED_RATE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS33.000002","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"judgment"},"references":["IAS 33 §6"],"exercise":{"prompt":{"fr":"","en":"In the lesson's background reasoning, profit is allocated among classes of participating instruments at the same rate for all entities.","es":""},"explanation":{"fr":"","en":"To remember: the notional allocation, a background reasoning, follows each class's rights, as the entity's clauses provide; no rate is presented as a rule.","es":""},"common_error":{"fr":"","en":"Looking for a rate instead of reading each class's rights.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000016","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"BASIC_EPS_SIMPLE","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"numeric-basic"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Calculate Merlane SA's basic earnings per share. Case convention: amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"840,000 / 1,500,000 = €0.56. No preference dividend is given: the numerator is the profit attributable to ordinary holders (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Dividing by a rounded or miscopied number of shares.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Profit attributable to the parent's ordinary equity holders","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares (shares)","es":""},"value":"1500000","unit":"UNITS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.56,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent's ordinary equity holders","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares (shares)","es":""},"value":1500000,"unit":"UNITS"}],"result":0.56,"unit":"EUR"}],"rationale":{"fr":"","en":"No preference dividend is given: the numerator is the profit attributable to ordinary holders (IAS 33, para. 10).","es":""},"references":["REF.IAS33.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000017","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"EPS_AFTER_NCI","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"The Dorvane group has profit for the year of €3,150,000, of which €390,000 belongs to non-controlling interests. Determine the profit attributable to the parent and then basic earnings per share. Case convention: amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"3,150,000 - 390,000 = €2,760,000; 2,760,000 / 5,000,000 = €0.55 (IAS 33, paras. 9 and 10).","es":""},"common_error":{"fr":"","en":"Dividing total consolidated profit, minorities included.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Weighted average number of the parent's ordinary shares (shares)","es":""},"value":"5000000","unit":"UNITS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Profit attributable to the parent","es":""},"answer":2760000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.55,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent","es":""},"value":2760000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of the parent's ordinary shares (shares)","es":""},"value":5000000,"unit":"UNITS"}],"result":0.55,"unit":"EUR"}],"references":["REF.IAS33.9","REF.IAS33.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000018","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NUMERATOR_CHOICE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9"],"exercise":{"prompt":{"fr":"","en":"The Brasel group has consolidated profit of €910,000, of which €140,000 belongs to minority shareholders of subsidiaries. Which amount is the numerator of the parent's basic earnings per share, absent any preference dividend?","es":""},"explanation":{"fr":"","en":"Rule to remember: the numerator is profit attributable to the parent's ordinary equity holders: 910,000 - 140,000 = €770,000 (IAS 33, para. 9).","es":""},"common_error":{"fr":"","en":"Taking total consolidated profit as the numerator.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€770,000, that is, consolidated profit less the minorities' share","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€910,000, that is, consolidated profit for the year, minorities included, as the basis of the split","es":""},"correct":false,"feedback":{"fr":"","en":"The numerator is profit attributable to the parent's holders, so excluding the minorities' share (IAS 33, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"€140,000, that is, the minorities' share, which is the part going to holders of subsidiaries' securities","es":""},"correct":false,"feedback":{"fr":"","en":"The minorities' share is precisely what must be excluded from the numerator (IAS 33, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"€1,050,000, that is, consolidated profit plus the minorities' share, in order to cover the whole group","es":""},"correct":false,"feedback":{"fr":"","en":"Adding the minorities' share would count it twice and does not match profit attributable to the parent (IAS 33, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000019","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CLOSING_SHARES_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Basic earnings per share is calculated by dividing the profit attributable to ordinary holders by the number of ordinary shares in issue at the reporting date.","es":""},"explanation":{"fr":"","en":"Rule to remember: the denominator is the weighted average number of ordinary shares in issue during the period (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Using the number of shares at the closing date.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000020","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FORMULA_BLANKS","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Complete the basic earnings per share formula.","es":""},"explanation":{"fr":"","en":"Numerator: profit attributable to the parent's ordinary equity holders; denominator: weighted average number (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Taking the number of shares at a single date.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Basic earnings per share is the quotient of profit attributable to holders of {{cat}} shares of the {{entite}} by the {{nombre}} number of shares in issue during the period.","es":""},"blanks":[{"id":"cat","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"potential","es":""}},{"id":"c2","text":{"fr":"","en":"preference","es":""}},{"id":"c3","text":{"fr":"","en":"ordinary","es":""}}],"answer":"c3"},{"id":"entite","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"subsidiary","es":""}},{"id":"c2","text":{"fr":"","en":"joint venture","es":""}},{"id":"c3","text":{"fr":"","en":"parent","es":""}}],"answer":"c3"},{"id":"nombre","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"at the closing date","es":""}},{"id":"c2","text":{"fr":"","en":"at the opening date","es":""}},{"id":"c3","text":{"fr":"","en":"weighted average","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000021","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA","IAS33.BASIC.EARNINGS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"EPS_STEPS_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Put the steps of a parent's basic earnings per share calculation in order.","es":""},"explanation":{"fr":"","en":"First the numerator is established (IAS 33, para. 9), then the denominator, then one divides (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Dividing before deducting preference dividends.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Determine the profit for the period attributable to the parent","es":""}},{"id":"s2","text":{"fr":"","en":"Deduct adjustments belonging to other classes, such as preference dividends after tax","es":""}},{"id":"s3","text":{"fr":"","en":"Determine the weighted average number of ordinary shares in issue","es":""}},{"id":"s4","text":{"fr":"","en":"Divide the profit belonging to ordinary holders by the weighted average number","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000022","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"MINI_CASE","context":"PHARMA","tested_point":"TOTAL_AND_CONTINUING_EPS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"numeric-basic"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Analyse Tharel SA's earnings per share.","es":""},"explanation":{"fr":"","en":"Total profit and that of continuing operations share the same denominator; only the numerator differs (IAS 33, paras. 9 and 10).","es":""},"common_error":{"fr":"","en":"Recalculating the denominator for each numerator.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Tharel SA presents its continuing operations separately. Case data: profit for the year attributable to the parent's ordinary equity holders €1,350,000, of which €1,200,000 from continuing operations; weighted average number of ordinary shares 3,000,000; no preference dividend. Case convention: amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate total basic earnings per share, then that of continuing operations.","es":""},"explanation":{"fr":"","en":"1,350,000 / 3,000,000 = €0.45; 1,200,000 / 3,000,000 = €0.40 (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Computing EPS from continuing operations on total profit: only profit from continuing operations is used.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Basic earnings per share (total)","es":""},"answer":0.45,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Basic earnings per share (continuing operations)","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Basic earnings per share (total)","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"profit for the year attributable to the parent's ordinary equity holders €1,350,000","es":""},"value":1350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"weighted average number of ordinary shares 3,000,000","es":""},"value":3000000}],"result":0.45,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Basic earnings per share (continuing operations)","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"of which €1,200,000 from continuing operations","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"weighted average number of ordinary shares 3,000,000","es":""},"value":3000000}],"result":0.4,"unit":"EUR"}],"references":["REF.IAS33.10"]}},{"prompt":{"fr":"","en":"Why does Tharel SA calculate two basic earnings per share amounts?","es":""},"explanation":{"fr":"","en":"Rule to remember: if continuing operations are presented separately, an earnings per share figure is calculated for them too (IAS 33, para. 9).","es":""},"common_error":{"fr":"","en":"Looking for a threshold or a change of denominator.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the number of shares differs between total profit and that of continuing operations","es":""},"correct":false,"feedback":{"fr":"","en":"The denominator is the same; only the numerator changes (IAS 33, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Because continuing operations fall under another earnings per share, calculated for another class of shares","es":""},"correct":false,"feedback":{"fr":"","en":"Both amounts concern the same ordinary equity holders of the parent (IAS 33, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Because the standard requires a second calculation once an entity's profit exceeds one million","es":""},"correct":false,"feedback":{"fr":"","en":"No amount threshold is involved; the second calculation follows from the separate presentation (IAS 33, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Because it presents continuing operations separately, which calls for a calculation of their own","es":""},"correct":true}],"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000023","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA","IAS33.BASIC.EARNINGS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"NUMERATOR_DENOMINATOR_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000003","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"pitfalls"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the basic earnings per share calculation.","es":""},"explanation":{"fr":"","en":"Rule to remember: numerator: profit attributable to the parent's ordinary holders; denominator: weighted average number (IAS 33, paras. 9 and 10).","es":""},"common_error":{"fr":"","en":"Taking the number of shares at the start.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The denominator is the number of ordinary shares in issue at the start of the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"The denominator is the weighted average number of ordinary shares in issue during the period (IAS 33, para. 10).","es":""}},{"id":"s2","text":{"fr":"","en":"Basic earnings per share is an amount expressed per ordinary share.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The numerator is total consolidated profit, non-controlling interests included.","es":""},"erroneous":true,"correction":{"fr":"","en":"The numerator is profit attributable to the parent's ordinary equity holders, excluding non-controlling interests (IAS 33, para. 9).","es":""}},{"id":"s4","text":{"fr":"","en":"If continuing operations are presented separately, the profit attributable to them is the subject of a separate calculation.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000024","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NONCUMULATIVE_DECLARED_ONLY","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-cumulative"},"references":["IAS 33 §12","IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Valdor SA has profit attributable to the parent of €1,640,000 and 2,000,000 ordinary shares as a weighted average. Its preference shares are non-cumulative: €120,000 of dividends were declared for the year, and a further €80,000 was contemplated without being declared. No tax effect. Case convention: amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"Non-cumulative shares: dividends declared for the period are deducted, that is €120,000; 1,640,000 - 120,000 = €1,520,000; 1,520,000 / 2,000,000 = €0.76 (IAS 33).","es":""},"common_error":{"fr":"","en":"Also deducting the €80,000 contemplated but not declared.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Preference dividend to deduct","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"answer":1520000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.76,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Valdor SA has profit attributable to the parent of €1,640,000","es":""},"value":1640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividend to deduct","es":""},"value":120000,"unit":"EUR"}],"result":1520000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"value":1520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"2,000,000 ordinary shares as a weighted average","es":""},"value":2000000}],"result":0.76,"unit":"EUR"}],"references":["REF.IAS33.12","REF.IAS33.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000025","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"CUMULATIVE_DUE_NOT_DECLARED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"numeric-pref"},"references":["IAS 33 §12","IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Sorvane SA has profit attributable to the parent of €970,000 and 1,000,000 ordinary shares as a weighted average. Its preference shares are cumulative: the dividend due for the year is €60,000, not declared; during the year, €60,000 was paid in respect of the previous year. No tax effect. Case convention: amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"Cumulative shares: the dividend due for the year is deducted, declared or not (€60,000); the prior-year payment is excluded; (970,000 - 60,000) / 1,000,000 = €0.91 (IAS 33).","es":""},"common_error":{"fr":"","en":"Deducting €120,000 by adding the prior-year payment.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Preference dividend to deduct","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.91,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sorvane SA has profit attributable to the parent of €970,000","es":""},"value":970000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividend to deduct","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"1,000,000 ordinary shares as a weighted average","es":""},"value":1000000}],"result":0.91,"unit":"EUR"}],"references":["REF.IAS33.12","REF.IAS33.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000026","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHICH_DIVIDEND_DEDUCTED","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-cumulative"},"references":["IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"An entity has non-cumulative preference shares. For the year, the board proposed a dividend that the general meeting in the end did not declare. What amount is deducted for the ordinary holders?","es":""},"explanation":{"fr":"","en":"Rule to remember: for non-cumulative preference shares, dividends declared for the period are deducted (IAS 33).","es":""},"common_error":{"fr":"","en":"Reasoning on the expected dividend rather than the declared one.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing, because for non-cumulative shares the dividends declared for the period are deducted","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The proposed dividend, since it was provided for in the articles of the preference class","es":""},"correct":false,"feedback":{"fr":"","en":"For non-cumulative shares, declaration is what counts, not the statutory provision (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Half of the proposed dividend, out of prudence given the uncertainty of the declaration","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not provide for a partial deduction out of prudence: the declared dividend is deducted (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"The proposed dividend, to be picked up in the year when it is finally declared if ever by the general meeting","es":""},"correct":false,"feedback":{"fr":"","en":"An undeclared non-cumulative dividend is not carried forward as a cumulative arrear would be (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000027","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PREF_DIVIDEND_BEFORE_TAX_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-deduction"},"references":["IAS 33 §12"],"exercise":{"prompt":{"fr":"","en":"The preference dividend is deducted from the numerator at its pre-tax amount, any tax effect being ignored.","es":""},"explanation":{"fr":"","en":"Rule to remember: preference dividends are taken at their after-tax amount (IAS 33).","es":""},"common_error":{"fr":"","en":"Ignoring the tax effect attached to the dividend.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000028","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"CUMULATIVE_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-cumulative"},"references":["IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Complete the deduction rule for cumulative preference shares.","es":""},"explanation":{"fr":"","en":"Cumulative: dividends due for the period, declared or not, excluding arrears paid during the period (IAS 33).","es":""},"common_error":{"fr":"","en":"Taking dividends paid rather than dividends due.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"For cumulative shares, the dividends {{statut}} for the period are deducted, whether they have been declared or {{non}}, excluding those paid during the period in respect of {{periodes}} periods.","es":""},"blanks":[{"id":"statut","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"paid","es":""}},{"id":"c2","text":{"fr":"","en":"due","es":""}},{"id":"c3","text":{"fr":"","en":"proposed","es":""}}],"answer":"c2"},{"id":"non","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"not","es":""}},{"id":"c2","text":{"fr":"","en":"not yet","es":""}}],"answer":"c1"},{"id":"periodes","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"interim","es":""}},{"id":"c2","text":{"fr":"","en":"future","es":""}},{"id":"c3","text":{"fr":"","en":"prior","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000029","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.CUMULATIVE_TREATMENT","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"MINI_CASE","context":"ENERGY","tested_point":"TWO_CLASSES_PREFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"numeric-pref"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Calculate Kelvane SA's basic earnings per share taking two series of preference shares into account.","es":""},"explanation":{"fr":"","en":"Series A (non-cumulative): declared; series B (cumulative): due for the year; arrears excluded (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding all the amounts cited without distinguishing the series.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: profit attributable to the parent €1,310,000; weighted average number of ordinary shares 2,400,000. Series A, non-cumulative: €40,000 of dividends declared for the year. Series B, cumulative: €70,000 of dividend due for the year, of which €35,000 declared; in addition, €50,000 of arrears from a prior year were paid during the year. Amounts are after tax. Case convention: amount per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Determine the total preference dividends to deduct, then the profit belonging to ordinary holders.","es":""},"explanation":{"fr":"","en":"Series A: declared dividends, €40,000; series B: dividend due for the year, €70,000, declared or not, excluding the €50,000 of arrears; 1,310,000 - 40,000 - 70,000 = €1,200,000 (IAS 33).","es":""},"common_error":{"fr":"","en":"Deducting series B arrears or omitting its undeclared dividend: for a cumulative series, the year's dividend is deducted, declared or not.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Series A to deduct","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Series B to deduct","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"c","meaning":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"profit attributable to the parent €1,310,000","es":""},"value":1310000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Series A to deduct","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Series B to deduct","es":""},"value":70000,"unit":"EUR"}],"result":1200000,"unit":"EUR"}],"references":["REF.IAS33.10"]}},{"prompt":{"fr":"","en":"Calculate basic earnings per share.","es":""},"explanation":{"fr":"","en":"1,200,000 / 2,400,000 = €0.50 (IAS 33).","es":""},"common_error":{"fr":"","en":"Dividing profit before preference dividends: the numerator is profit attributable to ordinary shareholders.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"d","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.5,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What becomes of the €50,000 of arrears paid during the year in respect of a prior year?","es":""},"explanation":{"fr":"","en":"Rule to remember: prior-period cumulative dividends paid during the period are not deducted a second time (IAS 33).","es":""},"common_error":{"fr":"","en":"Tying the deduction to the payment date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not deducted again: it was deducted in the year to which it relates","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is deducted in the year of payment, since that is when the cash goes out","es":""},"correct":false,"feedback":{"fr":"","en":"A cumulative dividend is deducted for the period to which it is due, not that of payment (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It is deducted half in each of the two years concerned, by a spreading convention","es":""},"correct":false,"feedback":{"fr":"","en":"No spreading convention is provided for; the arrears were already deducted in their own year (IAS 33).","es":""}}],"id":"p3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000030","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"PREFERENCE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"pitfalls"},"references":["IAS 33 §12","IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about deducting preference dividends.","es":""},"explanation":{"fr":"","en":"Rule to remember: cumulative: due, declared or not; non-cumulative: declared; always after tax (IAS 33).","es":""},"common_error":{"fr":"","en":"Mixing up the rules of the two natures of shares.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"For non-cumulative shares, an undeclared dividend is deducted because it is owed to the class.","es":""},"erroneous":true,"correction":{"fr":"","en":"For non-cumulative shares, dividends declared for the period are deducted (IAS 33).","es":""}},{"id":"s2","text":{"fr":"","en":"Preference dividends are deducted at their pre-tax amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"Preference dividends are deducted at their after-tax amount (IAS 33).","es":""}},{"id":"s3","text":{"fr":"","en":"The deduction applies to total profit and to profit from continuing operations attributable to ordinary holders.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"For cumulative shares, a dividend due for the year is deducted even if it is not declared.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000031","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREF_SETTLEMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SETTLEMENT_PREMIUM","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-settlement"},"references":["IAS 33 §12","IAS 33 §16","IAS 33 §17","IAS 33 §18"],"exercise":{"prompt":{"fr":"","en":"During the year, Delmar SA buys back preference shares classified as equity. It pays €760,000 for shares with a carrying amount of €700,000. Under IAS 33, how does the €60,000 difference enter basic earnings per share?","es":""},"explanation":{"fr":"","en":"To remember: the settlement difference adjusts the numerator (IAS 33, paras. 12 and 16); settling preference shares above carrying amount reduces the profit belonging to ordinary holders.","es":""},"common_error":{"fr":"","en":"Treating the difference as a mere equity movement with no effect on the ratio.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is ignored, because buying back preference shares touches cash and equity","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement differences on preference shares adjust the profit belonging to ordinary holders (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It increases the profit belonging to ordinary holders, since the entity has saved future dividends","es":""},"correct":false,"feedback":{"fr":"","en":"An amount paid above carrying amount is a return to preference holders: it reduces, rather than increases, the profit belonging to ordinary holders (IAS 33, para. 16).","es":""}},{"id":"C","text":{"fr":"","en":"It is added to the denominator as equivalent additional ordinary shares","es":""},"correct":false,"feedback":{"fr":"","en":"This difference adjusts the numerator; it does not create ordinary shares in the denominator (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It reduces the profit belonging to ordinary holders, as a return paid to preference holders","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000032","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREF_SETTLEMENT","IAS33.BASIC.PREFERENCE_DIVIDENDS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"DIVIDENDS_PLUS_SETTLEMENT","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-settlement"},"references":["IAS 33 §12","IAS 33 §16","IAS 33 §17","IAS 33 §18"],"exercise":{"prompt":{"fr":"","en":"Parlane SA has profit attributable to the parent of €2,300,000 and 2,000,000 ordinary shares as a weighted average. Its equity-classified preference shares are non-cumulative: €100,000 of dividends declared for the year. It also settled one series of these shares for €460,000, whereas their carrying amount was €400,000. Amounts are after tax. Case convention: amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"Difference: 460,000 - 400,000 = €60,000; 2,300,000 - 100,000 - 60,000 = €2,140,000; 2,140,000 / 2,000,000 = €1.07 (difference deducted: IAS 33, paras. 12 and 16).","es":""},"common_error":{"fr":"","en":"Forgetting the settlement difference and deducting only the dividend.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Settlement difference to deduct","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Profit belonging to ordinary holders","es":""},"answer":2140000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.07,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Settlement difference to deduct","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"It also settled one series of these shares for €460,000","es":""},"value":460000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"whereas their carrying amount was €400,000","es":""},"value":400000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"references":["REF.IAS33.12","REF.IAS33.16"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000033","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.BASIC.CUMULATIVE_TREATMENT","IAS33.BASIC.PREF_SETTLEMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NONCUMULATIVE_TIMING_JUDGMENT","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IAS33.000004","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"judgment"},"references":["IAS 33"],"exercise":{"prompt":{"fr":"","en":"An entity's board proposes in February N+1 a non-cumulative preference dividend for N, which the general meeting will declare in April N+1. How does the professional approach the deduction for N's earnings per share?","es":""},"explanation":{"fr":"","en":"To remember: the point at which a non-cumulative dividend is \"declared\" calls for a documented reading; the Interpretations Committee discussion (2011-2012), whose staff papers note diversity in practice and which closed without amending the standard, is cited as context and not as a rule (IAS 33).","es":""},"common_error":{"fr":"","en":"Looking for a mandatory date instead of documenting a reading.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He or she adopts the board's proposal date without examining the facts or the articles","es":""},"correct":false,"feedback":{"fr":"","en":"A date adopted without examination is not a documented reading: the timing of declaration gave rise to diversity in practice noted in the staff papers for an Interpretations Committee discussion (2011-2012, closed without amending the standard).","es":""}},{"id":"B","text":{"fr":"","en":"He or she deducts an amount pro rata to the months between closing and declaration to smooth the effect","es":""},"correct":false,"feedback":{"fr":"","en":"A smoothing pro rata is not the adjustment concerned: for non-cumulative shares, the dividend declared for the period is deducted (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"He or she assesses when the dividend is regarded as declared, adopts a consistent reading and documents it","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"He or she defers to the majority shareholder's practice, since the declaration is its decision","es":""},"correct":false,"feedback":{"fr":"","en":"The choice rests on the entity's facts and articles, not on a shareholder's practice (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000034","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"WEIGHTED_ONE_ISSUE","difficulty":"BEGINNER","estimated_time_s":110,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"numeric-weighted"},"references":["IAS 33 §19","IAS 33 §20","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Rivane SA has 1,800,000 ordinary shares on 1 January and issues 540,000 for cash on 1 May. Profit attributable to ordinary holders is €1,252,800. Weighting in months; amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"From 1 May to 31 December: 8 months out of 12; 1,800,000 + 540,000 x 8/12 = 2,160,000; 1,252,800 / 2,160,000 = €0.58 (IAS 33, para. 20).","es":""},"common_error":{"fr":"","en":"Counting the 540,000 shares for the whole year or miscounting the 8 months.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Weighted average number of shares","es":""},"answer":2160000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.58,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary holders is €1,252,800","es":""},"value":1252800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of shares","es":""},"value":2160000,"unit":"UNITS"}],"result":0.58,"unit":"EUR"}],"references":["REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000035","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"WEIGHTED_ISSUE_AND_BUYBACK","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"numeric-weighted"},"references":["IAS 33 §19","IAS 33 §20","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Kelmar SA has 3,000,000 shares on 1 January, issues 900,000 on 1 March and buys back 840,000 on 1 November. Profit attributable to ordinary holders: €2,310,400. Weighting in months; amount per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"Issue: 900,000 x 10/12 = 750,000; buy-back: 840,000 x 2/12 = 140,000; 3,000,000 + 750,000 - 140,000 = 3,610,000; 2,310,400 / 3,610,000 = €0.64 (IAS 33, para. 20).","es":""},"common_error":{"fr":"","en":"Deducting the buy-back for the whole year instead of two months.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Contribution of the issue","es":""},"answer":750000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Contribution of the buy-back (absolute value)","es":""},"answer":140000,"tolerance":0,"unit":"UNITS"},{"id":"s3","label":{"fr":"","en":"Weighted average number of shares","es":""},"answer":3610000,"tolerance":0,"unit":"UNITS"},{"id":"s4","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.64,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Contribution of the issue","es":""},"expression":"a * 10 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"January, issues 900,000","es":""},"value":900000}],"result":750000,"unit":"UNITS"},{"step":"s2","meaning":{"fr":"","en":"Contribution of the buy-back (absolute value)","es":""},"expression":"a * 2 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"March and buys back 840,000","es":""},"value":840000}],"result":140000,"unit":"UNITS"},{"step":"s3","meaning":{"fr":"","en":"Weighted average number of shares","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"3,000,000 shares","es":""},"value":3000000},{"symbol":"b","meaning":{"fr":"","en":"Contribution of the issue","es":""},"value":750000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Contribution of the buy-back (absolute value)","es":""},"value":140000,"unit":"UNITS"}],"result":3610000,"unit":"UNITS"},{"step":"s4","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary holders: €2,310,400","es":""},"value":2310400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of shares","es":""},"value":3610000,"unit":"UNITS"}],"result":0.64,"unit":"EUR"}],"references":["REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000036","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"INCLUSION_DATE_CASH_ISSUE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-inclusion"},"references":["IAS 33 §21"],"exercise":{"prompt":{"fr":"","en":"Hovane SA decides on 1 May to issue ordinary shares. The subscription contract provides that the cash is receivable on 15 June, and the shares are recorded on 1 July. From which date are they included in the weighted average number?","es":""},"explanation":{"fr":"","en":"Rule to remember: inclusion starts on the date the consideration is receivable, generally the date of issue (IAS 33, para. 21).","es":""},"common_error":{"fr":"","en":"Using the decision or registration date instead of the consideration date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On 1 May, the date of the entity's issue decision","es":""},"correct":false,"feedback":{"fr":"","en":"The decision to issue does not bring the share into the denominator; the date follows the consideration receivable (IAS 33, para. 21).","es":""}},{"id":"B","text":{"fr":"","en":"On 1 July, the date the shares are credited to securities accounts","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is the date the consideration is receivable, not that of crediting (IAS 33, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"On 31 December, the reporting date, when the number of shares issued is finally fixed","es":""},"correct":false,"feedback":{"fr":"","en":"The number of shares is not frozen at the reporting date for the average (IAS 33, para. 21).","es":""}},{"id":"D","text":{"fr":"","en":"On 15 June, the date the consideration is receivable","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000037","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"LAST_DAY_ISSUE_FALSE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"pitfalls"},"references":["IAS 33 §19"],"exercise":{"prompt":{"fr":"","en":"Ordinary shares issued on the last day of the year are counted for a full year in the weighted average number.","es":""},"explanation":{"fr":"","en":"Rule to remember: each share counts for the fraction of the period during which it is in issue; a last-day issue weighs next to nothing (IAS 33, para. 19).","es":""},"common_error":{"fr":"","en":"Counting shares at the closing number.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000038","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE","IAS33.SHARES.CONTINGENT_BASIC","IAS33.SHARES.MANDATORY_CONVERTIBLE"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"INCLUSION_EVENTS_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-inclusion"},"references":["IAS 33 §21","IAS 33 §24","IAS 33 §23"],"exercise":{"prompt":{"fr":"","en":"Match each situation to the date from which the shares concerned count in basic earnings.","es":""},"explanation":{"fr":"","en":"Each situation has its own inclusion date (IAS 33, paras. 21 and 24; IAS 33 for the mandatorily convertible instrument).","es":""},"common_error":{"fr":"","en":"Applying the issue date to every situation.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Shares issued for cash","es":""}},{"id":"l2","text":{"fr":"","en":"Shares issued in place of interest","es":""}},{"id":"l3","text":{"fr":"","en":"Contingently issuable shares","es":""}},{"id":"l4","text":{"fr":"","en":"Mandatorily convertible instrument","es":""}}],"right":[{"id":"r2","text":{"fr":"","en":"Date from which interest stops accruing","es":""}},{"id":"r3","text":{"fr":"","en":"Date all necessary conditions are satisfied","es":""}},{"id":"r4","text":{"fr":"","en":"Date the contract is entered into","es":""}},{"id":"r1","text":{"fr":"","en":"Date the cash is receivable","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000039","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"THREE_MOVEMENTS_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":210,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"numeric-weighted"},"references":["IAS 33 §19","IAS 33 §20","IAS 33 §21","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Calculate Nelvane SA's basic earnings per share after three movements in capital.","es":""},"explanation":{"fr":"","en":"Each movement is weighted by its duration from its own inclusion date (IAS 33, paras. 20 and 21).","es":""},"common_error":{"fr":"","en":"Weighting all movements by the same factor.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: 5,000,000 ordinary shares on 1 January; issue of 1,200,000 shares for cash on 1 February; conversion of a debt into 840,000 shares on 1 August; buy-back of 600,000 shares on 1 December. Profit attributable to ordinary holders: €4,160,000. Weighting in months; amount per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Determine the weighted average number of ordinary shares.","es":""},"explanation":{"fr":"","en":"1,200,000 x 11/12 = 1,100,000; 840,000 x 5/12 = 350,000; 600,000 x 1/12 = 50,000; 5,000,000 + 1,100,000 + 350,000 - 50,000 = 6,400,000 (IAS 33, para. 20).","es":""},"common_error":{"fr":"","en":"Adding end-of-period share numbers without pro-rating: each movement is weighted by the time it is outstanding in the year.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Contribution of the February issue","es":""},"answer":1100000,"tolerance":0,"unit":"UNITS"},{"id":"b","label":{"fr":"","en":"Contribution of the August conversion","es":""},"answer":350000,"tolerance":0,"unit":"UNITS"},{"id":"c","label":{"fr":"","en":"Contribution of the December buy-back (absolute value)","es":""},"answer":50000,"tolerance":0,"unit":"UNITS"},{"id":"d","label":{"fr":"","en":"Weighted average number","es":""},"answer":6400000,"tolerance":0,"unit":"UNITS"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Contribution of the February issue","es":""},"expression":"a * 11 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"1,200,000 shares for cash","es":""},"value":1200000}],"result":1100000,"unit":"UNITS"},{"step":"b","meaning":{"fr":"","en":"Contribution of the August conversion","es":""},"expression":"a * 5 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"840,000 shares","es":""},"value":840000}],"result":350000,"unit":"UNITS"},{"step":"c","meaning":{"fr":"","en":"Contribution of the December buy-back (absolute value)","es":""},"expression":"a * 1 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"600,000 shares","es":""},"value":600000}],"result":50000,"unit":"UNITS"},{"step":"d","meaning":{"fr":"","en":"Weighted average number","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"5,000,000 ordinary shares","es":""},"value":5000000},{"symbol":"b","meaning":{"fr":"","en":"Contribution of the February issue","es":""},"value":1100000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Contribution of the August conversion","es":""},"value":350000,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Contribution of the December buy-back (absolute value)","es":""},"value":50000,"unit":"UNITS"}],"result":6400000,"unit":"UNITS"}],"references":["REF.IAS33.20"]}},{"prompt":{"fr":"","en":"Calculate basic earnings per share.","es":""},"explanation":{"fr":"","en":"4,160,000 / 6,400,000 = €0.65 (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Dividing by the closing number of shares: the denominator is the weighted average number for the period.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"e","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.65,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"From which date do the 840,000 shares arising from the debt conversion count?","es":""},"explanation":{"fr":"","en":"Rule to remember: shares issued on conversion of a debt count from the date of conversion (IAS 33, para. 21).","es":""},"common_error":{"fr":"","en":"Counting them from the start of the year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From 1 January, because the debt already existed at the start of the year","es":""},"correct":false,"feedback":{"fr":"","en":"The shares exist only from conversion; before that there is only a debt (IAS 33, para. 21).","es":""}},{"id":"B","text":{"fr":"","en":"From 1 December, the date of the buy-back that follows the conversion in the year","es":""},"correct":false,"feedback":{"fr":"","en":"The December buy-back is a separate movement, unrelated to the inclusion date of the converted shares (IAS 33, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"From the date of conversion, that is 1 August","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"From 1 February, with the cash issue, by grouping the year's movements","es":""},"correct":false,"feedback":{"fr":"","en":"Each movement has its own inclusion date; they are not grouped (IAS 33, para. 21).","es":""}}],"id":"p3","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000040","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.CONTINGENT_BASIC","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"CONTINGENT_BASIC_WEIGHT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-contingent"},"references":["IAS 33 §24","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"A business acquisition agreement provides for the issue of 240,000 ordinary shares if a sales target is reached. The target is reached on 1 October. The entity had 4,000,000 shares in issue all year. Weighting in months.","es":""},"explanation":{"fr":"","en":"Conditions met on 1 October: 240,000 x 3/12 = 60,000; 4,000,000 + 60,000 = 4,060,000 (IAS 33, para. 24).","es":""},"common_error":{"fr":"","en":"Including the shares for the whole year from signing of the agreement.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Contribution of the contingent shares","es":""},"answer":60000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Weighted average number of shares","es":""},"answer":4060000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Contribution of the contingent shares","es":""},"expression":"a * 3 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"A business acquisition agreement provides for the issue of 240,000 ordinary shares if a sales target is reached","es":""},"value":240000}],"result":60000,"unit":"UNITS"},{"step":"s2","meaning":{"fr":"","en":"Weighted average number of shares","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"The entity had 4,000,000 shares in issue all year","es":""},"value":4000000},{"symbol":"b","meaning":{"fr":"","en":"Contribution of the contingent shares","es":""},"value":60000,"unit":"UNITS"}],"result":4060000,"unit":"UNITS"}],"references":["REF.IAS33.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000041","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.MANDATORY_CONVERTIBLE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"MANDATORY_CONVERTIBLE_DATE","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-mandatory"},"references":["IAS 33 §23"],"exercise":{"prompt":{"fr":"","en":"On 1 July, Brovane SA enters into a contract for an instrument mandatorily convertible into 450,000 ordinary shares at the maturity date set eighteen months out. From when do these shares count in basic earnings per share?","es":""},"explanation":{"fr":"","en":"Rule to remember: shares of a mandatorily convertible instrument count as in issue from the contract date (IAS 33).","es":""},"common_error":{"fr":"","en":"Equating the mandatorily convertible instrument with one convertible at the holder's option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the conversion date, in eighteen months, when the shares are actually issued","es":""},"correct":false,"feedback":{"fr":"","en":"For a mandatorily convertible instrument, inclusion starts at the contract date (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"From 1 July, the date the contract is entered into","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Not in basic earnings, the instrument remaining a potential share until conversion","es":""},"correct":false,"feedback":{"fr":"","en":"A mandatory conversion has the shares treated as in issue for basic earnings (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"From the following 1 January, the start of the first full year covered by the contract","es":""},"correct":false,"feedback":{"fr":"","en":"No rule defers inclusion to the start of a year: it runs from the contract date (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000042","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.PARTLY_PAID","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"PARTLY_PAID_EQUIVALENT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-partly-paid"},"references":["IAS 33 §19","IAS 33 §A15"],"exercise":{"prompt":{"fr":"","en":"Rovane SA has 1,000,000 fully paid ordinary shares and 500,000 partly paid ordinary shares, which are entitled to 50% of the dividend of a fully paid share. They are all in issue all year. Under IAS 33 (treatment proportional to the dividend entitlement, para. A15), what equivalent number of shares goes into the denominator?","es":""},"explanation":{"fr":"","en":"Treatment proportional to the dividend entitlement (IAS 33, para. A15): 500,000 x 50% = 250,000; 1,000,000 + 250,000 = 1,250,000.","es":""},"common_error":{"fr":"","en":"Counting the partly paid shares as whole shares.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Equivalent of the partly paid shares","es":""},"answer":250000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Number of shares in the denominator","es":""},"answer":1250000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Equivalent of the partly paid shares","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"500,000 partly paid ordinary shares, which are entitled","es":""},"value":500000},{"symbol":"b","meaning":{"fr":"","en":"partly paid ordinary shares, which are entitled to 50%","es":""},"value":50,"unit":"PERCENT"}],"result":250000,"unit":"UNITS"},{"step":"s2","meaning":{"fr":"","en":"Number of shares in the denominator","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"1,000,000 fully paid ordinary shares","es":""},"value":1000000},{"symbol":"b","meaning":{"fr":"","en":"Equivalent of the partly paid shares","es":""},"value":250000,"unit":"UNITS"}],"result":1250000,"unit":"UNITS"}],"rationale":{"fr":"","en":"Treatment proportional to the dividend entitlement (IAS 33, para. A15): 500,000 x 50% = 250,000","es":""},"references":["REF.IAS33.A15"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000043","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.SHARES.PARTLY_PAID"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"MINING","tested_point":"PARTLY_PAID_PROPORTION_TRUE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS33.000005","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"judgment"},"references":["IAS 33 §A15"],"exercise":{"prompt":{"fr":"","en":"Under IAS 33 (para. A15), ordinary shares issued partly paid are included in the denominator in proportion to their entitlement to participate in dividends, relative to a fully paid share.","es":""},"explanation":{"fr":"","en":"To remember: under IAS 33 (para. A15), the treatment of partly paid shares is proportional to their dividend entitlement; the rights come from the issue terms.","es":""},"common_error":{"fr":"","en":"Ignoring them until fully paid.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000044","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"BONUS_ISSUE_RESTATE_PRIOR","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"numeric-bonus"},"references":["IAS 33 §26","IAS 33 §28","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"During year N, Mirvane SA allots one free share for every five held. It had 2,400,000 shares, constant in N and N-1; N-1 profit attributable to ordinary holders was €1,152,000, that is €0.48 per share as published. Calculate the restated number of shares and then restated N-1 earnings per share.","es":""},"explanation":{"fr":"","en":"2,400,000 x (1 + 1/5) = 2,880,000; 1,152,000 / 2,880,000 = €0.40, without weighting (IAS 33, paras. 28 and 64).","es":""},"common_error":{"fr":"","en":"Weighting the bonus issue by its date or leaving €0.48 unchanged.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Restated number of shares","es":""},"answer":2880000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Restated N-1 earnings per share","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Restated number of shares","es":""},"expression":"a * (1 + 1 / 5)","variables":[{"symbol":"a","meaning":{"fr":"","en":"It had 2,400,000 shares","es":""},"value":2400000}],"result":2880000,"unit":"UNITS"}],"references":["REF.IAS33.28","REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000045","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"SPLIT_THREE_FOR_ONE","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"numeric-bonus"},"references":["IAS 33 §27","IAS 33 §28","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"On 1 October N, Lorvel SA splits its shares three for one. It had 800,000 shares throughout N and throughout N-1. Profit attributable to ordinary holders: €960,000 in N, €888,000 in N-1. Calculate the restated number of shares and the earnings per share for N and N-1 after the split. Amounts per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"800,000 x 3 = 2,400,000 for N and N-1, without weighting at 1 October; 960,000 / 2,400,000 = €0.40; 888,000 / 2,400,000 = €0.37 (IAS 33, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Restating only N and leaving N-1 at its published amount.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Restated number of shares","es":""},"answer":2400000,"tolerance":0,"unit":"UNITS"},{"id":"s2","label":{"fr":"","en":"Earnings per share N","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Restated earnings per share N-1","es":""},"answer":0.37,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Restated number of shares","es":""},"expression":"a * 3","variables":[{"symbol":"a","meaning":{"fr":"","en":"800,000 shares throughout N and throughout","es":""},"value":800000}],"result":2400000,"unit":"UNITS"},{"step":"s2","meaning":{"fr":"","en":"Earnings per share N","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary holders: €960,000","es":""},"value":960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of shares","es":""},"value":2400000,"unit":"UNITS"}],"result":0.4,"unit":"EUR"}],"references":["REF.IAS33.27","REF.IAS33.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000046","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"STOCK_DIVIDEND_EVENT","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-bonus"},"references":["IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Dolvane SA distributes to its shareholders, in place of a cash dividend, new shares issued by capitalising reserves, with nobody paying in cash. How is this event treated in earnings per share?","es":""},"explanation":{"fr":"","en":"Rule to remember: a capitalisation or bonus issue (stock dividend) is restated across all periods presented (IAS 33, para. 27).","es":""},"common_error":{"fr":"","en":"Treating the free allotment as a contribution of resources.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a cash issue, time-weighted from the date of distribution","es":""},"correct":false,"feedback":{"fr":"","en":"No cash is received: the event does not change resources and is not weighted (IAS 33, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"As an event without a change in resources: the number of shares of all periods presented is restated","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a conversion of instruments, with an effect limited to the period's diluted earnings","es":""},"correct":false,"feedback":{"fr":"","en":"These are shares issued free of charge, which affect basic earnings of all periods (IAS 33, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"As a buy-back, the denominator being reduced from the distribution date","es":""},"correct":false,"feedback":{"fr":"","en":"The event increases the number of shares; it does not reduce it (IAS 33, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000047","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WEIGHT_OR_RESTATE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-bonus"},"references":["IAS 33 §26","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Classify each transaction according to whether it calls for an unweighted restatement of all periods or time-weighting.","es":""},"explanation":{"fr":"","en":"Without a change in resources (split, reverse split, bonus issue): restatement; with a change in resources: weighting (IAS 33, para. 26).","es":""},"common_error":{"fr":"","en":"Weighting a split or restating a cash issue.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Unweighted restatement","es":""}},{"id":"c2","text":{"fr":"","en":"Time-weighting","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Splitting each share into four","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Consolidating ten old shares into one new share","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Distribution of free shares by capitalising reserves","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"Issue of shares for cash at market price","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Conversion of a debt into ordinary shares","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"Entity's buy-back of its own shares","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000048","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RETROSPECTIVE","IAS33.ADJUST.BONUS_SPLIT"],"dimension":"APPLICATION","format":"MINI_CASE","context":"FOOD","tested_point":"AFTER_YEAR_END_SPLIT_MINI","difficulty":"INTERMEDIATE","estimated_time_s":170,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §64","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Calculate Corvel SA's earnings per share after a split occurring after the reporting date.","es":""},"explanation":{"fr":"","en":"The split after the reporting date but before authorisation is reflected in all the calculations presented (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Keeping the closing number of shares.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Corvel SA has a 31 December year end N. On 18 February N+1, it splits its shares four for one; its financial statements are authorised for issue on 10 March N+1. It had 1,550,000 shares in N and in N-1. Profit attributable to ordinary holders: €1,860,000 in N, €1,488,000 in N-1. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the number of shares used and the earnings per share for N and N-1 to present.","es":""},"explanation":{"fr":"","en":"1,550,000 x 4 = 6,200,000; 1,860,000 / 6,200,000 = €0.30; 1,488,000 / 6,200,000 = €0.24 (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Restating only N, or keeping the old share count for N-1: the adjustment applies retrospectively to all periods presented.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Number of shares used","es":""},"answer":6200000,"tolerance":0,"unit":"UNITS"},{"id":"b","label":{"fr":"","en":"Earnings per share N","es":""},"answer":0.3,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Earnings per share N-1","es":""},"answer":0.24,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Number of shares used","es":""},"expression":"a * 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"1,550,000 shares","es":""},"value":1550000}],"result":6200000,"unit":"UNITS"},{"step":"b","meaning":{"fr":"","en":"Earnings per share N","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary holders: €1,860,000","es":""},"value":1860000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of shares used","es":""},"value":6200000,"unit":"UNITS"}],"result":0.3,"unit":"EUR"}],"references":["REF.IAS33.64"]}},{"prompt":{"fr":"","en":"Besides these calculations, what must Corvel SA do about the split?","es":""},"explanation":{"fr":"","en":"Rule to remember: when the change follows the reporting date and precedes authorisation for issue, the calculations rest on the new number of shares and the fact is disclosed (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Thinking the calculation suffices without a mention.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Disclose that the calculations are based on the new number of shares","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No further restatement, the split being already visible in earnings per share","es":""},"correct":false,"feedback":{"fr":"","en":"The fact must be disclosed when the change follows the reporting date and precedes authorisation (IAS 33, para. 64).","es":""}},{"id":"C","text":{"fr":"","en":"Publish in addition a second set of earnings per share on the old number of shares for year N","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for the new number to be used and the fact disclosed, not for a second set (IAS 33, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"Wait for the following year to mention the transaction in the disclosures","es":""},"correct":false,"feedback":{"fr":"","en":"The fact is disclosed in the statements of the year whose calculations are affected (IAS 33, para. 64).","es":""}}],"id":"p2","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000049","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.REVERSE_SPLIT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"REVERSE_SPLIT_PRIOR_EPS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-reverse"},"references":["IAS 33 §27","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"Bromel SA consolidates its shares six for one during year N, with no cash movement. What does it do with the N-1 earnings per share presented as a comparative?","es":""},"explanation":{"fr":"","en":"Rule to remember: a reverse split is restated across all periods presented, in the direction of fewer shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Multiplying instead of dividing, or leaving the comparative unchanged.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It leaves it at its published amount, the reverse split belonging to year N","es":""},"correct":false,"feedback":{"fr":"","en":"A reverse split adjusts the number of shares of all periods presented (IAS 33, para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"It weights it by the time between the reverse split date and the end of N","es":""},"correct":false,"feedback":{"fr":"","en":"A reverse split is not weighted; it is restated as if it had occurred at the start (IAS 33, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"It recalculates it by multiplying the number of shares by six, the reverse split having raised their value","es":""},"correct":false,"feedback":{"fr":"","en":"A reverse split reduces the number of shares: it is divided by six, not multiplied (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It recalculates it on the number of shares after the reverse split, as for any other period presented","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000050","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RETROSPECTIVE","IAS33.ADJUST.BONUS_SPLIT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RETRO_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §26","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about restating earnings per share.","es":""},"explanation":{"fr":"","en":"Rule to remember: events without a change in resources: restatement of all periods, without weighting; conversion of potential shares: excluded (IAS 33, paras. 26 and 64).","es":""},"common_error":{"fr":"","en":"Extending the restatement to every change in the number of shares.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"After the reporting date and before authorisation, a split is reflected in the calculations and the fact is disclosed.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The conversion of a convertible bond is restated over prior periods like a split.","es":""},"erroneous":true,"correction":{"fr":"","en":"The conversion of potential shares is excluded from this restatement: it changes resources (IAS 33, para. 26).","es":""}},{"id":"s3","text":{"fr":"","en":"A share split leads to recalculating earnings per share of all periods presented.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"Free shares distributed during the year are weighted from the date of their distribution.","es":""},"erroneous":true,"correction":{"fr":"","en":"Free shares are restated without weighting, as if the event had occurred at the start of the earliest period presented (IAS 33, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000051","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.ERRORS_POLICIES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ERROR_CORRECTION_EPS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-errors"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"An entity retrospectively corrects an error that had overstated last year's profit. The number of shares has not changed. What happens to last year's earnings per share presented as a comparative?","es":""},"explanation":{"fr":"","en":"Rule to remember: errors corrected retrospectively adjust earnings per share of all the periods concerned (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that only a change in the number of shares alters a comparative.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It stays at the published amount, the error not having changed the number of shares in the denominator","es":""},"correct":false,"feedback":{"fr":"","en":"The corrected numerator changes the ratio even if the denominator does not move (IAS 33, para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"It is recalculated in the current year, the difference being taken to the current year's profit","es":""},"correct":false,"feedback":{"fr":"","en":"The correction is retrospective: it affects the comparative, not the current year's profit (IAS 33, para. 64).","es":""}},{"id":"C","text":{"fr":"","en":"It is recalculated with the corrected profit, because the retrospective correction also adjusts earnings per share","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is removed from the comparative until the error is approved by the general meeting","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires no prior approval; earnings per share is adjusted (IAS 33, para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000052","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CONVERSION_RESTATED_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"pitfalls"},"references":["IAS 33 §26"],"exercise":{"prompt":{"fr":"","en":"The conversion of a convertible bond into ordinary shares is an event that leads to retrospective restatement of the number of shares of prior periods.","es":""},"explanation":{"fr":"","en":"Rule to remember: conversion of potential shares is excluded from the restatement of events without a change in resources (IAS 33, para. 26).","es":""},"common_error":{"fr":"","en":"Equating conversion with a split.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000053","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.DILUTED_PRIOR"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"DILUTED_PRIOR_NOT_ADJUSTED","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-diluted-prior"},"references":["IAS 33 §65"],"exercise":{"prompt":{"fr":"","en":"For year N-1, Salvane SA had published diluted earnings of €0.58 per share, assuming conversion of a convertible bond. In N, the bond was actually converted. What happens to N-1 diluted earnings presented as a comparative?","es":""},"explanation":{"fr":"","en":"Rule to remember: prior-period diluted earnings is not adjusted for changes in assumptions or later conversions (IAS 33).","es":""},"common_error":{"fr":"","en":"Applying to prior diluted earnings the restatement of events without a change in resources.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is recalculated as if the conversion had taken place at the start of N-1, for consistency with N","es":""},"correct":false,"feedback":{"fr":"","en":"Prior-period diluted earnings is not adjusted for the conversion of potential shares into ordinary shares (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It is replaced by N-1 basic earnings, the conversion having ended the potential character","es":""},"correct":false,"feedback":{"fr":"","en":"The diluted comparative stays as published; it is not replaced by basic earnings (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It is adjusted when the gap exceeds a materiality threshold set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no such threshold and does not adjust prior diluted earnings for a conversion (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It is not adjusted for the conversion that took place afterwards","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000054","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS8_IAS10","IAS33.ADJUST.RETROSPECTIVE","IAS33.ADJUST.DILUTED_PRIOR"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IAS8_IAS10_BOUNDARY","difficulty":"EXPERT","estimated_time_s":100,"lesson_id":"LS.IAS33.000006","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-ias8"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"A professional prepares the earnings per share of an entity with a 31 December year end. After the reporting date and before authorisation for issue, two facts occur: a share split and the actual conversion of a convertible bond. Which treatment of earnings per share does he or she adopt?","es":""},"explanation":{"fr":"","en":"Rule to remember: a change in the number of shares by split between the reporting date and authorisation is reflected and disclosed; prior diluted earnings is not adjusted for a conversion (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating two events of a different nature the same way.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He or she reflects the split with mention of the fact, but does not adjust diluted earnings for the conversion","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He or she reflects both facts in the calculations, since both occur before authorisation for issue","es":""},"correct":false,"feedback":{"fr":"","en":"Only the change in the number of shares by split is reflected; the conversion does not adjust prior diluted earnings (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"He or she reflects neither fact in the year just ended, both belonging to the following year","es":""},"correct":false,"feedback":{"fr":"","en":"A split after the reporting date and before authorisation is reflected and the fact disclosed (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"He or she reflects the conversion and ignores the split, the conversion changing resources","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: the split is restated, the conversion is not for prior diluted earnings (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000055","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"TERP_AND_FACTOR","difficulty":"BEGINNER","estimated_time_s":110,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-rights"},"references":["IAS 33 §A2","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"A rights issue offers one new share for every four held, at €2. The price just before exercise is €12. Calculate the theoretical ex-rights price (for four old shares and one new share) and then the adjustment factor.","es":""},"explanation":{"fr":"","en":"(4 x 12.00 + 2.00) / 5 = €10; 12.00 / 10.00 = 1.2 (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Forgetting to add the proceeds of the issue to the numerator.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Theoretical ex-rights price","es":""},"answer":10,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.2,"tolerance":0}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Adjustment factor","es":""},"expression":"12 / a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Theoretical ex-rights price","es":""},"value":10,"unit":"EUR"}],"result":1.2}],"references":["REF.IAS33.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000056","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"RIGHTS_RESTATE_PRIOR_EPS","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-prior"},"references":["IAS 33 §A2","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"A rights issue of one new share for every share held, at €4, takes place when the price just before exercise is €12; the theoretical ex-rights price is therefore €8. The prior year had 1,350,000 shares and a profit of €1,215,000, that is €0.90 per share as published. Calculate the factor, the restated number of shares and the restated prior-year earnings per share.","es":""},"explanation":{"fr":"","en":"12.00 / 8.00 = 1.5; 1,350,000 x 1.5 = 2,025,000; 1,215,000 / 2,025,000 = €0.60 (IAS 33, paras. 26, 27(b), 64 and A2).","es":""},"common_error":{"fr":"","en":"Dividing the number of shares by the factor instead of multiplying.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.5,"tolerance":0},{"id":"s2","label":{"fr":"","en":"Restated prior-year number of shares","es":""},"answer":2025000,"tolerance":0,"unit":"UNITS"},{"id":"s3","label":{"fr":"","en":"Restated prior-year earnings per share","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Adjustment factor","es":""},"expression":"a / 8","variables":[{"symbol":"a","meaning":{"fr":"","en":"takes place when the price just before exercise is €12","es":""},"value":12,"unit":"EUR"}],"result":1.5}],"references":["REF.IAS33.A2","REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000057","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"RIGHTS_WEIGHTED_CURRENT_YEAR","difficulty":"INTERMEDIATE","estimated_time_s":170,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"numeric-rights"},"references":["IAS 33 §A2","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"Rouvane SA had 2,100,000 shares. A rights issue of one new share for every three held (700,000 new shares) is exercised on 1 April. The theoretical ex-rights price is €12.50 and the price just before exercise €15. Profit attributable to ordinary holders: €2,184,000. Weighting in months; amount per share rounded to two decimals. Apply the factor also to the shares before exercise, weighted over time.","es":""},"explanation":{"fr":"","en":"15 / 12.50 = 1.2; 2,100,000 x 1.2 x 3/12 = 630,000; 2,800,000 x 9/12 = 2,100,000; total 2,730,000; 2,184,000 / 2,730,000 = €0.80 (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Applying the factor to the shares after exercise instead of those before.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.2,"tolerance":0},{"id":"s2","label":{"fr":"","en":"Shares before exercise, weighted","es":""},"answer":630000,"tolerance":0,"unit":"UNITS"},{"id":"s3","label":{"fr":"","en":"Shares after exercise, weighted","es":""},"answer":2100000,"tolerance":0,"unit":"UNITS"},{"id":"s4","label":{"fr":"","en":"Earnings per share for the year","es":""},"answer":0.8,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Shares before exercise, weighted","es":""},"expression":"a * b * 3 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rouvane SA had 2,100,000 shares","es":""},"value":2100000},{"symbol":"b","meaning":{"fr":"","en":"Adjustment factor","es":""},"value":1.2}],"result":630000,"unit":"UNITS"}],"references":["REF.IAS33.A2","REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000058","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"BONUS_ELEMENT_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"understand"},"references":["IAS 33 §27","IAS 33 §A2"],"exercise":{"prompt":{"fr":"","en":"Four issues are offered to existing shareholders. In which one is there a bonus element to restate?","es":""},"explanation":{"fr":"","en":"Rule to remember: when the subscription price is below the value of the share, the rights issue includes a bonus element (IAS 33, para. 27).","es":""},"common_error":{"fr":"","en":"Seeing a bonus element in any issue offered to shareholders.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A subscription at €8 for shares worth €8 just before exercise, open to shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"The issue price equals the value before exercise: the theoretical price is unchanged and there is no bonus element (IAS 33, paras. 26, 27(b) and A2).","es":""}},{"id":"B","text":{"fr":"","en":"An issue of new shares to outside investors at the market price of €8","es":""},"correct":false,"feedback":{"fr":"","en":"An issue at market price to third parties has no free part: it is time-weighted (IAS 33, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"A subscription at €5 for shares worth €8 just before the rights are exercised","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A buy-back from shareholders at €8, equal to the value of the share","es":""},"correct":false,"feedback":{"fr":"","en":"A buy-back is not a rights issue; it changes resources and is weighted (IAS 33, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000059","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NO_BONUS_AT_FAIR_PRICE_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-rights"},"references":["IAS 33 §A2"],"exercise":{"prompt":{"fr":"","en":"A rights issue whose subscription price equals the value of the share just before exercise contains a bonus element, with an adjustment factor above 1.","es":""},"explanation":{"fr":"","en":"Rule to remember: at that price, the theoretical ex-rights price equals the price before: the factor is 1 and there is no free part (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Assuming a rights issue always carries a free part.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000060","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"RIGHTS_STEPS_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-rights"},"references":["IAS 33 §A2"],"exercise":{"prompt":{"fr":"","en":"Put the steps for restating a rights issue in order.","es":""},"explanation":{"fr":"","en":"The theoretical price comes before the factor, which comes before application to the shares (IAS 33, paras. 26, 27(b) and A2); for the year of the issue, it also applies to the shares before exercise, weighted over time.","es":""},"common_error":{"fr":"","en":"Applying a factor before calculating the theoretical price.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Add the value of the shares before exercise and the proceeds of the issue","es":""}},{"id":"s2","text":{"fr":"","en":"Divide that total by the number of shares after the issue to obtain the theoretical price","es":""}},{"id":"s3","text":{"fr":"","en":"Divide the price before exercise by the theoretical price to obtain the factor","es":""}},{"id":"s4","text":{"fr":"","en":"Multiply the shares before exercise and in prior periods by the factor","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000061","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS","IAS33.ADJUST.RETROSPECTIVE","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"RIGHTS_FULL_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":230,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"numeric-rights"},"references":["IAS 33 §A2","IAS 33 §64","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"Calculate Noldar SA's earnings per share after a rights issue.","es":""},"explanation":{"fr":"","en":"The factor multiplies the shares before exercise; the new shares count from the exercise date (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Weighting all the shares the same way with no factor.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Noldar SA had 1,800,000 shares. On 1 September N, a rights issue of one new share for every two held at €6 (900,000 new shares) is exercised; the price just before exercise is €12. Profit attributable to ordinary holders: €3,042,000 in N, €2,160,000 in N-1. Weighting in months; amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Determine the theoretical ex-rights price and the adjustment factor.","es":""},"explanation":{"fr":"","en":"(2 x 12.00 + 6.00) / 3 = €10; 12.00 / 10.00 = 1.2 (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Computing the factor with the subscription price: it is fair value before exercise of rights divided by the theoretical ex-rights value.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Theoretical ex-rights price","es":""},"answer":10,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.2,"tolerance":0}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Adjustment factor","es":""},"expression":"12 / a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Theoretical ex-rights price","es":""},"value":10,"unit":"EUR"}],"result":1.2}],"references":["REF.IAS33.A2","REF.IAS33.64","REF.IAS33.20"]}},{"prompt":{"fr":"","en":"Calculate the weighted average number for N and earnings per share for N.","es":""},"explanation":{"fr":"","en":"1,800,000 x 1.2 x 8/12 = 1,440,000; 2,700,000 x 4/12 = 900,000; total 2,340,000; 3,042,000 / 2,340,000 = €1.30 (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Applying the adjustment factor to shares in the period after the issue: it only concerns the period before.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"c","label":{"fr":"","en":"Weighted average number for N","es":""},"answer":2340000,"tolerance":0,"unit":"UNITS"},{"id":"d","label":{"fr":"","en":"Earnings per share N","es":""},"answer":1.3,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"d","meaning":{"fr":"","en":"Earnings per share N","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary holders: €3,042,000","es":""},"value":3042000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number for N","es":""},"value":2340000,"unit":"UNITS"}],"result":1.3,"unit":"EUR"}],"references":["REF.IAS33.A2","REF.IAS33.64","REF.IAS33.20"]}},{"prompt":{"fr":"","en":"Calculate restated N-1 earnings per share (published: €1.20).","es":""},"explanation":{"fr":"","en":"1,800,000 x 1.2 = 2,160,000; 2,160,000 / 2,160,000 = €1 (IAS 33, paras. 26, 27(b), 64 and A2).","es":""},"common_error":{"fr":"","en":"Keeping N-1's published EPS: it is restated using the rights issue adjustment factor.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"e","label":{"fr":"","en":"Restated N-1 earnings per share","es":""},"answer":1,"tolerance":0,"unit":"EUR"}],"id":"p3","dimension":"CALCULATION","formula":{"lines":[{"step":"e","meaning":{"fr":"","en":"Restated N-1 earnings per share","es":""},"expression":"(a * b) / (a * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"1,800,000 shares","es":""},"value":1800000},{"symbol":"b","meaning":{"fr":"","en":"published: €1.20","es":""},"value":1.2,"unit":"EUR"}],"result":1,"unit":"EUR"}],"references":["REF.IAS33.A2","REF.IAS33.64","REF.IAS33.20"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000062","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RIGHTS_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"pitfalls"},"references":["IAS 33 §27","IAS 33 §A2","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about a rights issue with a bonus element.","es":""},"explanation":{"fr":"","en":"Rule to remember: factor = price before / theoretical price after; the price before is case data (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Inverting the ratio or looking for a prescribed method.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The adjustment factor is the theoretical price divided by the price before exercise.","es":""},"erroneous":true,"correction":{"fr":"","en":"The factor is the price before exercise divided by the theoretical price, not the reverse (IAS 33, paras. 26, 27(b) and A2).","es":""}},{"id":"s2","text":{"fr":"","en":"Earnings per share of prior periods is recalculated with the number of shares multiplied by the factor.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The adjustment factor is the price before exercise divided by the theoretical ex-rights price.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The price before exercise is set by the standard according to a prescribed valuation method.","es":""},"erroneous":true,"correction":{"fr":"","en":"This price is case data; no method of determining it is presented as a rule (IAS 33, paras. 26, 27(b) and A2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000063","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FACTOR_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS33.000007","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-prior"},"references":["IAS 33 §A2"],"exercise":{"prompt":{"fr":"","en":"Complete the definition of the adjustment factor of a rights issue.","es":""},"explanation":{"fr":"","en":"Factor = price before exercise / theoretical ex-rights price; it applies to the prior periods (IAS 33, paras. 26, 27(b) and A2) and to the shares before exercise, weighted over time.","es":""},"common_error":{"fr":"","en":"Applying the factor to the new shares.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The factor is the {{num}} just before the rights are exercised divided by the theoretical price after {{evt}}; it multiplies the shares {{quand}} the exercise.","es":""},"blanks":[{"id":"num","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"dividend","es":""}},{"id":"c2","text":{"fr":"","en":"price","es":""}},{"id":"c3","text":{"fr":"","en":"exercise price","es":""}}],"answer":"c2"},{"id":"evt","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"the rights go ex","es":""}},{"id":"c2","text":{"fr":"","en":"the closing date","es":""}},{"id":"c3","text":{"fr":"","en":"the general meeting","es":""}}],"answer":"c1"},{"id":"quand","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"before","es":""}},{"id":"c2","text":{"fr":"","en":"after","es":""}},{"id":"c3","text":{"fr":"","en":"issued at","es":""}}],"answer":"c1"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000064","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR","IAS33.DILUTED.CONVERTIBLES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"AFTER_TAX_INTEREST_INCREMENTAL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-numerator"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"A convertible bond with a face value of €750,000 carries 4% interest and can be converted into 150,000 shares. The tax rate is 20%. Calculate the after-tax interest that would be saved over a full year, then this instrument's incremental earnings per share.","es":""},"explanation":{"fr":"","en":"750,000 x 4% = €30,000; 30,000 x (1 - 20%) = €24,000; 24,000 / 150,000 = €0.16 (IAS 33).","es":""},"common_error":{"fr":"","en":"Dividing the pre-tax interest by the number of shares.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Interest after tax","es":""},"answer":24000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Incremental earnings per share","es":""},"answer":0.16,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Interest after tax","es":""},"expression":"(a * b) * (1 - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"750,000 carries","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"carries 4%","es":""},"value":4,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"The tax rate is 20%","es":""},"value":20,"unit":"PERCENT"}],"result":24000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Incremental earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest after tax","es":""},"value":24000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"150,000 shares","es":""},"value":150000}],"result":0.16,"unit":"EUR"}],"references":["REF.IAS33.33","REF.IAS33.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000065","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR","IAS33.DILUTED.CONVERTIBLES","IAS33.DILUTED.GENERAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"DILUTED_EPS_CONVERTIBLE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"numeric-convertible"},"references":["IAS 33 §33","IAS 33 §36","IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"Avlen SA has profit attributable to ordinary holders of €1,080,000 and 1,800,000 shares as a weighted average. A convertible bond outstanding all year would give rise to €45,000 of after-tax interest and 240,000 additional shares. Calculate basic earnings per share and then diluted earnings. Amounts per share rounded to two decimals.","es":""},"explanation":{"fr":"","en":"1,080,000 / 1,800,000 = €0.60; 1,080,000 + 45,000 = €1,125,000; 1,800,000 + 240,000 = 2,040,000; 1,125,000 / 2,040,000 = €0.55 (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding the shares without adding back the interest.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Diluted numerator","es":""},"answer":1125000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Diluted denominator","es":""},"answer":2040000,"tolerance":0,"unit":"UNITS"},{"id":"s4","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.55,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s4","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Diluted numerator","es":""},"value":1125000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Diluted denominator","es":""},"value":2040000,"unit":"UNITS"}],"result":0.55,"unit":"EUR"}],"references":["REF.IAS33.33","REF.IAS33.36","REF.IAS33.31"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000066","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONVERTIBLES","IAS33.DILUTED.NUMERATOR"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"CONVERTIBLE_ISSUED_JULY","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"numeric-midyear"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"Rimane SA issues on 1 July a convertible bond with a face value of €400,000, 7% interest, convertible into 100,000 shares. Tax rate: 30%. Weighting in months. Calculate, for the year, the after-tax interest to add to the numerator and the additional weighted shares.","es":""},"explanation":{"fr":"","en":"Conversion assumed on 1 July: 6/12; 400,000 x 7% x 6/12 = €14,000; 14,000 x (1 - 30%) = €9,800; 100,000 x 6/12 = 50,000 (IAS 33).","es":""},"common_error":{"fr":"","en":"Counting interest and shares for the whole year.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Interest after tax for the year","es":""},"answer":9800,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Additional weighted shares","es":""},"answer":50000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Additional weighted shares","es":""},"expression":"a * 6 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"convertible into 100,000 shares","es":""},"value":100000}],"result":50000,"unit":"UNITS"}],"references":["REF.IAS33.33","REF.IAS33.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000067","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DILUTED_PURPOSE","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"understand"},"references":["IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"An investor reads both basic and diluted earnings of a company. What does diluted earnings bring?","es":""},"explanation":{"fr":"","en":"Rule to remember: diluted earnings measures the potential effect of the assumed conversion or exercise of dilutive instruments (IAS 33).","es":""},"common_error":{"fr":"","en":"Reading diluted earnings as a forecast.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The potential effect, on earnings per share, of converting or exercising the instruments that dilute","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The earnings per share the entity will make next year, after the actual conversion of its instruments","es":""},"correct":false,"feedback":{"fr":"","en":"Diluted earnings is not a forecast: it assumes a conversion for measurement purposes, without it having happened (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Earnings per share of the preference shareholders, after deducting interest on debt","es":""},"correct":false,"feedback":{"fr":"","en":"Diluted earnings concerns ordinary shares and the potential shares that could dilute them (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"An earnings per share figure based on pre-tax profit, to neutralise the tax effect of conversions","es":""},"correct":false,"feedback":{"fr":"","en":"Adjustments are made after tax; diluted earnings is not calculated before tax (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000068","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ADD_BACK_INTEREST_TRUE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-numerator"},"references":["IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"In diluted earnings, the after-tax interest on a convertible debt that would no longer be incurred if it were converted is added to the numerator.","es":""},"explanation":{"fr":"","en":"Rule to remember: the diluted numerator recovers the interest, after tax, that would disappear on conversion (IAS 33).","es":""},"common_error":{"fr":"","en":"Leaving the interest expense in the numerator although the debt would be converted.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000069","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONVERTIBLES","IAS33.DILUTED.NUMERATOR"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"DILUTED_FILL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-convertibles"},"references":["IAS 33 §36","IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"Complete the diluted calculation principle for a convertible.","es":""},"explanation":{"fr":"","en":"After-tax interest in the numerator; shares issued in the denominator; conversion assumed at the start of the period or at issue (IAS 33).","es":""},"common_error":{"fr":"","en":"Taking the maturity or reporting date.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The interest {{impot}} tax is added to the numerator and the shares that would be issued to the denominator, conversion being assumed at the {{debut}} of the period or at the {{date}} date if later.","es":""},"blanks":[{"id":"impot","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"before","es":""}},{"id":"c2","text":{"fr":"","en":"after","es":""}}],"answer":"c2"},{"id":"debut","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"middle","es":""}},{"id":"c2","text":{"fr":"","en":"start","es":""}},{"id":"c3","text":{"fr":"","en":"end","es":""}}],"answer":"c2"},{"id":"date","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"issue","es":""}},{"id":"c2","text":{"fr":"","en":"reporting","es":""}},{"id":"c3","text":{"fr":"","en":"maturity","es":""}}],"answer":"c1"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000070","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR","IAS33.DILUTED.CONVERTIBLES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DILUTED_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"pitfalls"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about calculating diluted earnings with a convertible bond.","es":""},"explanation":{"fr":"","en":"Rule to remember: numerator: after-tax interest; denominator: shares issued; conversion assumed at the start or at issue (IAS 33).","es":""},"common_error":{"fr":"","en":"Mixing gross interest and conversion at the start of the year.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The number of shares for diluted earnings is the weighted average number increased by the shares issued on conversion.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The interest added to the numerator is the convertible debt's pre-tax interest.","es":""},"erroneous":true,"correction":{"fr":"","en":"Interest is added at its after-tax amount (IAS 33).","es":""}},{"id":"s3","text":{"fr":"","en":"For a convertible issued during the year, conversion is assumed on the first day of the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"Conversion is assumed at the issue date when it is later than the start of the period (IAS 33).","es":""}},{"id":"s4","text":{"fr":"","en":"Diluted earnings adjusts both the numerator and the denominator.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000071","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR","IAS33.DILUTED.CONVERTIBLES","IAS33.DILUTED.GENERAL"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"RETAIL","tested_point":"CONVERTIBLE_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":200,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"numeric-convertible"},"references":["IAS 33 §33","IAS 33 §36","IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"Calculate Sovane SA's diluted earnings and assess the effect of its convertible bond.","es":""},"explanation":{"fr":"","en":"Numerator and denominator are adjusted together; whether it is dilutive is judged on the ratio (IAS 33).","es":""},"common_error":{"fr":"","en":"Adjusting one of the two terms.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: profit attributable to ordinary holders €2,040,000; weighted average number 3,400,000; convertible bond outstanding all year, face value €1,200,000, 5% interest, 20% tax rate, convertible into 300,000 shares. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the numerator adjustment and diluted earnings per share.","es":""},"explanation":{"fr":"","en":"1,200,000 x 5% = €60,000; 60,000 x (1 - 20%) = €48,000; (2,040,000 + 48,000) / (3,400,000 + 300,000) = €0.56 (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding back pre-tax interest to the numerator: interest is added back net of its tax effect.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Interest after tax","es":""},"answer":48000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.56,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"(a + b) / (c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"profit attributable to ordinary holders €2,040,000","es":""},"value":2040000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest after tax","es":""},"value":48000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"weighted average number 3,400,000","es":""},"value":3400000},{"symbol":"d","meaning":{"fr":"","en":"convertible into 300,000 shares","es":""},"value":300000}],"result":0.56,"unit":"EUR"}],"references":["REF.IAS33.33","REF.IAS33.36","REF.IAS33.31"]}},{"prompt":{"fr":"","en":"Basic earnings per share is €0.60. How is the convertible's effect described?","es":""},"explanation":{"fr":"","en":"Rule to remember: an instrument is dilutive when its conversion assumption lowers earnings per share (IAS 33).","es":""},"common_error":{"fr":"","en":"Relying on the direction of the numerator rather than of the ratio.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Antidilutive, because the numerator rises by €48,000","es":""},"correct":false,"feedback":{"fr":"","en":"The label is judged on earnings per share, which falls here; the rise in the numerator does not decide it (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Neutral, because the convertible bond was not converted during the year","es":""},"correct":false,"feedback":{"fr":"","en":"The effect is measured by assumption, without actual conversion (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Dilutive, because earnings per share falls from €0.60 to €0.56","es":""},"correct":true}],"id":"p2","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000072","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS12","IAS33.DILUTED.NUMERATOR"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"TAX_EFFECT_ON_ADD_BACK","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000008","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-tax"},"references":["IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"An entity would save €70,000 of interest on a convertible debt assumed converted. Its tax rate applicable to that interest is 20%. What amount does it add to the diluted numerator?","es":""},"explanation":{"fr":"","en":"Rule to remember: the numerator adjustment is net of tax: 70,000 x (1 - 20%) = €56,000, with a rate taken from the case (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding the gross interest or the tax alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€56,000, that is, the interest less the tax effect taken from the case data","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€70,000, the gross interest, tax being dealt with separately by IAS 12","es":""},"correct":false,"feedback":{"fr":"","en":"The numerator adjustment is already after tax; tax is not dealt with separately (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"€14,000, that is, the tax effect itself, which is the saving made by the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The interest net of the tax effect is added, not the tax effect itself (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"€84,000, that is, the interest grossed up by the tax effect to reflect the tax benefit","es":""},"correct":false,"feedback":{"fr":"","en":"The tax effect is deducted from the interest; it is not added to it (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000073","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM","IAS33.DILUTED.GENERAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"TSM_FULL_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"numeric-tsm"},"references":["IAS 33 §45","IAS 33 §46","IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"Orvane SA has 450,000 options with an exercise price of €3.50, outstanding all year; the average market price is €4.50. Profit attributable to ordinary holders: €2,160,000; weighted average number: 3,600,000. Calculate the assumed proceeds, the shares issued at the average price, the additional shares and then diluted earnings per share (rounded to two decimals).","es":""},"explanation":{"fr":"","en":"450,000 x 3.50 = €1,575,000; 1,575,000 / 4.50 = 350,000; 450,000 - 350,000 = 100,000; 2,160,000 / (3,600,000 + 100,000) = €0.58 (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding the 450,000 options to the denominator without deducting the shares bought at the average price.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Assumed proceeds","es":""},"answer":1575000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Shares issued at the average price","es":""},"answer":350000,"tolerance":0,"unit":"UNITS"},{"id":"s3","label":{"fr":"","en":"Additional shares","es":""},"answer":100000,"tolerance":0,"unit":"UNITS"},{"id":"s4","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.58,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Shares issued at the average price","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Assumed proceeds","es":""},"value":1575000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"the average market price is €4.50","es":""},"value":4.5,"unit":"EUR"}],"result":350000,"unit":"UNITS"}],"references":["REF.IAS33.45","REF.IAS33.46","REF.IAS33.31"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000074","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"CALCULATION","format":"SINGLE_CHOICE","context":"MINING","tested_point":"TSM_INCREMENTAL_SHARES_CHOICE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-tsm"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Jorvane SA has 360,000 options with an exercise price of €7.50. The period's average market price is €9. How many additional shares does the treasury share method add to the diluted denominator?","es":""},"explanation":{"fr":"","en":"Rule to remember: additional shares = options x (average price - exercise price) / average price = 360,000 x 1.50 / 9.00 = 60,000 (IAS 33).","es":""},"common_error":{"fr":"","en":"Dividing by the exercise price instead of the average price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"60,000 shares, that is 360,000 x (9.00 - 7.50) / 9.00","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"300,000 shares, that is the number of shares the assumed proceeds would buy at the average price","es":""},"correct":false,"feedback":{"fr":"","en":"These are the shares acquired at the average price, which are deducted from the 360,000 options; the addition is the difference (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"72,000 shares, that is 360,000 x (9.00 - 7.50) / 7.50, dividing by the exercise price","es":""},"correct":false,"feedback":{"fr":"","en":"The division is by the average market price, not the exercise price (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"360,000 shares, each option being treated as a new share once it is in the money","es":""},"correct":false,"feedback":{"fr":"","en":"Only the part with no consideration is added, not the total number of options (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000075","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OUT_OF_MONEY_EXCLUDED_TRUE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-condition"},"references":["IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Options whose exercise price exceeds the period's average market price are excluded from diluted earnings.","es":""},"explanation":{"fr":"","en":"Rule to remember: at that price the option has no dilutive effect: it is excluded from diluted earnings (IAS 33).","es":""},"common_error":{"fr":"","en":"Counting every option without looking at the average price.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000076","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NUMERATOR_UNCHANGED_TRUE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"numeric-tsm"},"references":["IAS 33 §45"],"exercise":{"prompt":{"fr":"","en":"For dilutive options, the diluted numerator stays the same as the basic one, no interest or dividend being added back.","es":""},"explanation":{"fr":"","en":"Rule to remember: options carry no interest or dividend: only the denominator is adjusted (IAS 33).","es":""},"common_error":{"fr":"","en":"Looking for a numerator adjustment for options.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000077","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"TSM_STEPS_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-tsm"},"references":["IAS 33 §45"],"exercise":{"prompt":{"fr":"","en":"Put the steps of the treasury share method in order.","es":""},"explanation":{"fr":"","en":"Exercise is assumed, proceeds are calculated and converted at the average price, then the difference is used (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding the options to the denominator before calculating the proceeds.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Assume exercise of the dilutive options and count the shares issued","es":""}},{"id":"s2","text":{"fr":"","en":"Calculate the assumed proceeds: number of options x exercise price","es":""}},{"id":"s3","text":{"fr":"","en":"Convert those proceeds into shares issued at the average market price","es":""}},{"id":"s4","text":{"fr":"","en":"Deduct those shares from the shares issued: the difference is the issue for no consideration","es":""}},{"id":"s5","text":{"fr":"","en":"Add the difference to the weighted average number in the diluted denominator","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000078","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM","IAS33.DILUTED.TEST"],"dimension":"CALCULATION","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"THREE_OPTION_SERIES_MINI","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Analyse Kalvane SA's three series of options and calculate its diluted earnings.","es":""},"explanation":{"fr":"","en":"Only the series whose exercise price is below the average price add shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding series C's shares despite its exercise price above the average price.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Kalvane SA has three series of options outstanding all year: series A, 100,000 options at €6; series B, 150,000 options at €9; series C, 220,000 options at €12. Average market price for the period: €10. Profit attributable to ordinary holders: €1,760,000; weighted average number: 3,200,000. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Which series are dilutive?","es":""},"explanation":{"fr":"","en":"Rule to remember: the options whose exercise price is below the average price are the dilutive ones: A and B (IAS 33).","es":""},"common_error":{"fr":"","en":"Including every series.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Series C, whose exercise price is the highest of the three","es":""},"correct":false,"feedback":{"fr":"","en":"An exercise price above the average price excludes the series from diluted earnings (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Series A, whose exercise price is below the average price","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No dilutive series, since the options were not exercised during the period","es":""},"correct":false,"feedback":{"fr":"","en":"The dilutive effect is measured by assuming exercise, without actual exercise (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Series B, whose exercise price is below the average price","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the additional shares of each dilutive series and the total.","es":""},"explanation":{"fr":"","en":"A: 100,000 x (10 - 6) / 10 = 40,000; B: 150,000 x (10 - 9) / 10 = 15,000; total 55,000 (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding all shares under option: only the shares deemed issued for no consideration, under the treasury stock method, are added.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Additional shares of series A","es":""},"answer":40000,"tolerance":0,"unit":"UNITS"},{"id":"b","label":{"fr":"","en":"Additional shares of series B","es":""},"answer":15000,"tolerance":0,"unit":"UNITS"},{"id":"c","label":{"fr":"","en":"Total","es":""},"answer":55000,"tolerance":0,"unit":"UNITS"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Additional shares of series A","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"100,000 options at €","es":""},"value":100000},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period: €10","es":""},"value":10,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"options at €6","es":""},"value":6,"unit":"EUR"}],"result":40000,"unit":"UNITS"},{"step":"b","meaning":{"fr":"","en":"Additional shares of series B","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"150,000 options at €","es":""},"value":150000},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period: €10","es":""},"value":10,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"options at €9","es":""},"value":9,"unit":"EUR"}],"result":15000,"unit":"UNITS"},{"step":"c","meaning":{"fr":"","en":"Total","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Additional shares of series A","es":""},"value":40000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Additional shares of series B","es":""},"value":15000,"unit":"UNITS"}],"result":55000,"unit":"UNITS"}],"references":["REF.IAS33.45","REF.IAS33.46"]}},{"prompt":{"fr":"","en":"Calculate diluted earnings per share.","es":""},"explanation":{"fr":"","en":"1,760,000 / (3,200,000 + 55,000) = €0.54 (IAS 33).","es":""},"common_error":{"fr":"","en":"Dividing by the basic share count only: the diluted denominator adds the incremental shares of dilutive series.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"d","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.54,"tolerance":0,"unit":"EUR"}],"id":"p3","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000079","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"TSM_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"pitfalls"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the treasury share method.","es":""},"explanation":{"fr":"","en":"Rule to remember: average price for the period; addition = part with no consideration; out-of-the-money option excluded (IAS 33).","es":""},"common_error":{"fr":"","en":"Taking the closing price and counting each option as a share.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"An option whose exercise price is above the average price has no dilutive effect.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The method uses the period's average market price to convert the assumed proceeds into shares.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"Each dilutive option adds one whole share to the denominator, whatever the exercise price.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only the part with no consideration is added: options less shares bought at the average price (IAS 33).","es":""}},{"id":"s4","text":{"fr":"","en":"The method uses the closing price of the last trading day of the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"The price used is the average market price for the period (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000080","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.PURCHASED_OPTIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"PURCHASED_OPTIONS_EXCLUDED","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-purchased"},"references":["IAS 33 §62"],"exercise":{"prompt":{"fr":"","en":"An entity holds a call option on its own shares, bought from a bank, in the money at the reporting date. How does it treat it in diluted earnings?","es":""},"explanation":{"fr":"","en":"Rule to remember: calls and puts purchased by the entity are excluded from diluted earnings, their inclusion being antidilutive (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating a purchased option like an issued one.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It includes it using the treasury share method, like an option issued for a third party","es":""},"correct":false,"feedback":{"fr":"","en":"An option purchased by the entity is not included: including it would be antidilutive (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It includes it by reducing the denominator's number of shares by the amount of the option","es":""},"correct":false,"feedback":{"fr":"","en":"Reducing the denominator would raise earnings per share: that is the antidilutive effect that justifies exclusion (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It includes it if the bank is a related party, to treat the relationship as a conversion","es":""},"correct":false,"feedback":{"fr":"","en":"Related-party status plays no part; the purchased option is excluded (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It excludes it from diluted earnings, its inclusion being antidilutive","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000081","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.WRITTEN_PUTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"WRITTEN_PUTS_CALCULATION","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-puts"},"references":["IAS 33 §63"],"exercise":{"prompt":{"fr":"","en":"Selvane SA has written 90,000 put options with an exercise price of €25, outstanding all year. The average market price is €18. Calculate the repurchase obligation, the shares assumed issued at the average price to fund it and the additional shares in the diluted denominator.","es":""},"explanation":{"fr":"","en":"Exercise price 25.00 > average price 18.00: 90,000 x 25.00 = €2,250,000; 2,250,000 / 18.00 = 125,000; 125,000 - 90,000 = 35,000 (IAS 33).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the 90,000 shares repurchased.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Repurchase obligation","es":""},"answer":2250000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Shares assumed issued at the average price","es":""},"answer":125000,"tolerance":0,"unit":"UNITS"},{"id":"s3","label":{"fr":"","en":"Additional shares","es":""},"answer":35000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Shares assumed issued at the average price","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Repurchase obligation","es":""},"value":2250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The average market price is €18","es":""},"value":18,"unit":"EUR"}],"result":125000,"unit":"UNITS"}],"references":["REF.IAS33.63"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000082","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.EMPLOYEE_OPTIONS","IAS33.INTERACTIONS.IFRS2"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"EMPLOYEE_OPTIONS_ASSUMED_PROCEEDS","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS33.000009","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-employee"},"references":["IAS 33 §47A"],"exercise":{"prompt":{"fr":"","en":"Tirvane SA has 400,000 share options granted to its employees (IFRS 2), exercise price €3. The fair value of services still to be received is €1.50 per option. The average market price is €7.50. Calculate the assumed proceeds per option and the additional shares in the diluted denominator.","es":""},"explanation":{"fr":"","en":"3.00 + 1.50 = €4.50; 400,000 x (7.50 - 4.50) / 7.50 = 160,000 (IAS 33; IFRS 2).","es":""},"common_error":{"fr":"","en":"Using only the €3 exercise price as assumed proceeds.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Assumed proceeds per option","es":""},"answer":4.5,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Additional shares","es":""},"answer":160000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Assumed proceeds per option","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"exercise price €3","es":""},"value":3,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The fair value of services still to be received is €1.50 per option","es":""},"value":1.5,"unit":"EUR"}],"result":4.5,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Additional shares","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tirvane SA has 400,000 share options granted to its employees","es":""},"value":400000},{"symbol":"b","meaning":{"fr":"","en":"The average market price is €7.50","es":""},"value":7.5,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Assumed proceeds per option","es":""},"value":4.5,"unit":"EUR"}],"result":160000,"unit":"UNITS"}],"references":["REF.IAS33.47A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000083","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"DILUTION_TEST_INCREMENTAL","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §41"],"exercise":{"prompt":{"fr":"","en":"Gavrel SA's basic earnings per share from continuing operations is €0.60. A convertible bond would add €55,000 to the numerator and 110,000 shares to the denominator. What is concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: 55,000 / 110,000 = €0.50 is below €0.60: the instrument is dilutive and used (IAS 33).","es":""},"common_error":{"fr":"","en":"Reasoning on the direction of the additions alone instead of comparing ratios.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is dilutive: its incremental €0.50 per share is below €0.60","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is antidilutive, since it increases both the numerator and the number of shares","es":""},"correct":false,"feedback":{"fr":"","en":"What counts is the ratio of the two additions, compared with basic earnings (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It is antidilutive, because its incremental earnings exceed zero","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is with basic earnings of €0.60, not with zero (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It is neutral, because incremental earnings below basic earnings do not change the ratio","es":""},"correct":false,"feedback":{"fr":"","en":"Incremental earnings below basic earnings lower the ratio: the effect is dilutive (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000084","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SEQUENCING"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"RANK_BY_INCREMENTAL_EPS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-sequence"},"references":["IAS 33 §44"],"exercise":{"prompt":{"fr":"","en":"Three instruments have incremental earnings per share of: X €0.12, Y €0.40, Z €0.05. Rank them in the order they are tested for diluted earnings.","es":""},"explanation":{"fr":"","en":"The lowest incremental figure is included first: Z, then X, then Y (IAS 33).","es":""},"common_error":{"fr":"","en":"Taking alphabetical or list order.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Instrument Z, €0.05 per share","es":""}},{"id":"s2","text":{"fr":"","en":"Instrument X, €0.12 per share","es":""}},{"id":"s3","text":{"fr":"","en":"Instrument Y, €0.40 per share","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000085","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST","IAS33.DILUTED.SEQUENCING"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"CLASSIFY_AGAINST_BASIC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §41","IAS 33 §44"],"exercise":{"prompt":{"fr":"","en":"Basic earnings per share from continuing operations is €0.50. Classify each instrument by its incremental earnings per share.","es":""},"explanation":{"fr":"","en":"An instrument whose incremental earnings are below basic earnings dilutes; above it, it is antidilutive (IAS 33).","es":""},"common_error":{"fr":"","en":"Relying on the \"convertible\" label rather than the figure.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Dilutive, used","es":""}},{"id":"c2","text":{"fr":"","en":"Antidilutive, set aside","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Convertible bond: €0.20 per share","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Convertible preference shares: €0.45 per share","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Options with no numerator adjustment: €0 per share","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"Convertible bond: €0.60 per share","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Convertible preference shares: €0.75 per share","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000086","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST","IAS33.DILUTED.SEQUENCING","IAS33.DILUTED.CONVERTIBLES"],"dimension":"CALCULATION","format":"MINI_CASE","context":"ENERGY","tested_point":"THREE_INSTRUMENTS_MINI","difficulty":"INTERMEDIATE","estimated_time_s":260,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"numeric-sequence"},"references":["IAS 33 §44","IAS 33 §41","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"Determine Merval SA's diluted earnings, which has three potentially dilutive instruments.","es":""},"explanation":{"fr":"","en":"The instruments are tested from lowest to highest incremental earnings; the last is antidilutive and set aside (IAS 33).","es":""},"common_error":{"fr":"","en":"Not testing the last instrument.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: profit from continuing operations = total, attributable to ordinary holders €2,160,000; weighted average number 3,600,000; basic earnings €0.60. Instrument 1: options, 160,000 additional shares, no numerator adjustment. Instrument 2: convertible bond, €108,000 of after-tax interest, 270,000 shares. Instrument 3: convertible preference shares, €243,000 of dividends, 270,000 shares. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate each instrument's incremental earnings per share.","es":""},"explanation":{"fr":"","en":"0 / 160,000 = €0; 108,000 / 270,000 = €0.40; 243,000 / 270,000 = €0.90 (IAS 33).","es":""},"common_error":{"fr":"","en":"Ranking instruments without computing their incremental earnings: each one's numerator effect is divided by its incremental shares.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Instrument 1 (options)","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Instrument 2 (bond)","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Instrument 3 (preference shares)","es":""},"answer":0.9,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Include the instruments in order of their incremental earnings and calculate earnings per share after each dilutive step (rounded to two decimals).","es":""},"explanation":{"fr":"","en":"2,160,000 / 3,760,000 = €0.57; (2,160,000 + 108,000) / (3,760,000 + 270,000) = €0.56 (IAS 33).","es":""},"common_error":{"fr":"","en":"Including all instruments at once: they are included from most to least dilutive, stopping when one would be antidilutive.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"d","label":{"fr":"","en":"After the options","es":""},"answer":0.57,"tolerance":0,"unit":"EUR"},{"id":"e","label":{"fr":"","en":"After the convertible bond","es":""},"answer":0.56,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What becomes of instrument 3?","es":""},"explanation":{"fr":"","en":"Rule to remember: (2,268,000 + 243,000) / (4,030,000 + 270,000) = €0.58 exceeds €0.56: instrument 3 is antidilutive, diluted earnings €0.56 (IAS 33).","es":""},"common_error":{"fr":"","en":"Including every instrument without testing them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is used, because it increases the number of shares by 270,000","es":""},"correct":false,"feedback":{"fr":"","en":"An instrument is used only if it lowers earnings per share; here it raises it (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It is used before instrument 2 since it brings the largest numerator adjustment","es":""},"correct":false,"feedback":{"fr":"","en":"The order follows incremental earnings per share, lowest first, not the size of the adjustment (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It is used by half, out of prudence, to limit the effect on earnings per share","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no partial use: an instrument is used or set aside (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It is set aside: adding it would raise earnings per share to about €0.58","es":""},"correct":true}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000087","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONTROL_NUMBER_CHOICE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"numeric-control"},"references":["IAS 33 §42","IAS 33 §41"],"exercise":{"prompt":{"fr":"","en":"Hordane SA has profit from continuing operations of €840,000 and a loss from discontinued operations of €1,260,000; the total result is a loss of €420,000, with 2,400,000 shares. Options would add 240,000 shares with no other adjustment. Which result serves as the control number to judge whether the options are dilutive?","es":""},"explanation":{"fr":"","en":"Rule to remember: profit from continuing operations attributable to the parent serves as the control number: 840,000 / 2,400,000 = €0.35 against 840,000 / 2,640,000 = €0.32, the options are dilutive (IAS 33).","es":""},"common_error":{"fr":"","en":"Testing on the negative total result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The total result, a loss of €420,000, since it sums up the whole year","es":""},"correct":false,"feedback":{"fr":"","en":"The control number is the result from continuing operations, not the total result (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The loss from discontinued operations of €1,260,000, which explains the negative total result","es":""},"correct":false,"feedback":{"fr":"","en":"Discontinued operations are not the control number; continuing operations are looked at (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The average of the two results, to balance the effect of discontinued operations","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for; the control number is the result from continuing operations (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"The profit from continuing operations of €840,000, attributable to the parent","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000088","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"LOSS_TOTAL_EXCLUDES_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"numeric-control"},"references":["IAS 33 §42"],"exercise":{"prompt":{"fr":"","en":"If the total result is a loss, potential shares are excluded from diluted earnings even when the instrument is dilutive for continuing operations, which are profitable.","es":""},"explanation":{"fr":"","en":"Rule to remember: the test is made on profit from continuing operations: if the instrument is dilutive there, it is used for all diluted amounts (IAS 33).","es":""},"common_error":{"fr":"","en":"Making the test depend on the sign of the total result.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000089","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONTINGENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TECHNOLOGY","tested_point":"CONTINGENT_DILUTED_CLOSING_LEVEL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-contingent"},"references":["IAS 33 §52"],"exercise":{"prompt":{"fr":"","en":"An acquisition agreement provides for the issue of shares if cumulative profit over four years reaches a target. At the end of the second year, the profit level reached would trigger 96,000 shares if the year-end marked the end of the four-year period. How many shares are included in diluted earnings?","es":""},"explanation":{"fr":"","en":"Rule to remember: the number used is the number that would be issued if the reporting date marked the end of the contingency period (IAS 33, para. 52).","es":""},"common_error":{"fr":"","en":"Weighting by progress or taking the maximum.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"48,000 shares, half, because the four-year period is half elapsed","es":""},"correct":false,"feedback":{"fr":"","en":"No reduction proportional to progress is provided for the contingency period (IAS 33, para. 52).","es":""}},{"id":"B","text":{"fr":"","en":"96,000 shares, the number that would be issued if the reporting date were the end of the contingency period","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No shares, the condition not having been met at the end of the four years","es":""},"correct":false,"feedback":{"fr":"","en":"The reasoning is as if the reporting date were the end of the contingency period (IAS 33, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"384,000 shares, the maximum under the agreement, as a precaution for the user of the financial statements","es":""},"correct":false,"feedback":{"fr":"","en":"The contractual maximum is not used; the number depends on the level reached at the reporting date (IAS 33, para. 52).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000090","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SHARE_OR_CASH"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SHARE_OR_CASH_PRESUMPTION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-share-cash"},"references":["IAS 33 §58"],"exercise":{"prompt":{"fr":"","en":"An entity issues a note that the issuer may settle, at its choice, in 80,000 ordinary shares or in cash. It states that it will settle in cash. How does it treat the note in diluted earnings?","es":""},"explanation":{"fr":"","en":"Rule to remember: a contract settled in shares or cash at the entity's option is presumed settled in shares, whatever the stated intention (IAS 33, para. 58); where the choice lies with the holder, the more dilutive settlement method is used (IAS 33).","es":""},"common_error":{"fr":"","en":"Following management's intention or the history.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It follows its intention to settle in cash and therefore excludes the note from diluted earnings","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption of share settlement is not rebuttable: the entity's intention does not set it aside (IAS 33, para. 58).","es":""}},{"id":"B","text":{"fr":"","en":"It uses half of the shares, to reflect the uncertainty between the two possible settlement methods","es":""},"correct":false,"feedback":{"fr":"","en":"No partial settlement is provided for: share settlement is assumed (IAS 33, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"It assumes share settlement, despite the stated intention, and applies the dilution test","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It uses the most likely settlement method based on the history of its past settlements","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask for the most likely method to be estimated: the share settlement presumption applies (IAS 33, para. 58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000091","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SHARE_OR_CASH","IAS33.DILUTED.NUMERATOR"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"SHARE_OR_CASH_CALCULATION","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-share-cash"},"references":["IAS 33 §58"],"exercise":{"prompt":{"fr":"","en":"Daltrane SA has profit attributable to ordinary holders of €1,260,000 and 2,100,000 shares as a weighted average. A bond settled in shares or cash, assumed settled in shares, would add €42,000 of after-tax interest and 105,000 shares. Calculate incremental earnings per share, then diluted earnings (rounded to two decimals), basic earnings being €0.60.","es":""},"explanation":{"fr":"","en":"42,000 / 105,000 = €0.40, below €0.60: dilutive; (1,260,000 + 42,000) / (2,100,000 + 105,000) = €0.59 (IAS 33, para. 58).","es":""},"common_error":{"fr":"","en":"Setting the bond aside because the entity plans cash settlement.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Incremental earnings per share","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.59,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Incremental earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"A bond settled in shares or cash, assumed settled in shares, would add €42,000","es":""},"value":42000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"105,000 shares","es":""},"value":105000}],"result":0.4,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"(a + b) / (c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Daltrane SA has profit attributable to ordinary holders of €1,260,000","es":""},"value":1260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"A bond settled in shares or cash, assumed settled in shares, would add €42,000","es":""},"value":42000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"2,100,000 shares as a weighted average","es":""},"value":2100000},{"symbol":"d","meaning":{"fr":"","en":"105,000 shares","es":""},"value":105000}],"result":0.59,"unit":"EUR"}],"references":["REF.IAS33.58"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000092","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SHARE_OR_CASH"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"FINANCE","tested_point":"PRESUMPTION_NOT_REBUTTABLE_TRUE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS33.000010","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"judgment"},"references":["IAS 33 §58"],"exercise":{"prompt":{"fr":"","en":"For a contract settled in shares or cash, a high probability of cash settlement does not allow the presumption of share settlement to be set aside in diluted earnings.","es":""},"explanation":{"fr":"","en":"Rule to remember: the presumption of share settlement is not rebuttable (IAS 33, para. 58).","es":""},"common_error":{"fr":"","en":"Rebutting the presumption through history or intention.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000093","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE","IAS33.PRESENTATION.DISCONTINUED","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSUMER","tested_point":"THREE_EPS_AMOUNTS","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"numeric-presentation"},"references":["IAS 33 §66","IAS 33 §68","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Plavane SA has profit from continuing operations of €1,960,000, a loss from a discontinued operation of €560,000 and total profit of €1,400,000, all attributable to ordinary holders. Weighted average number: 3,500,000. Calculate basic earnings per share for continuing operations, the discontinued operation and in total (rounded to two decimals; the loss is entered as a negative).","es":""},"explanation":{"fr":"","en":"1,960,000 / 3,500,000 = €0.56; -560,000 / 3,500,000 = loss of €0.16; 1,400,000 / 3,500,000 = €0.40; 0.56 - 0.16 = 0.40 (IAS 33, paras. 66 and 68).","es":""},"common_error":{"fr":"","en":"Dividing the discontinued operation by a different denominator.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Continuing operations","es":""},"answer":0.56,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Discontinued operation","es":""},"answer":-0.16,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Total profit","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Continuing operations","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Plavane SA has profit from continuing operations of €1,960,000","es":""},"value":1960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number: 3,500,000","es":""},"value":3500000}],"result":0.56,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Total profit","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"total profit of €1,400,000","es":""},"value":1400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number: 3,500,000","es":""},"value":3500000}],"result":0.4,"unit":"EUR"}],"references":["REF.IAS33.66","REF.IAS33.68"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000094","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"LOSS_PER_SHARE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-loss"},"references":["IAS 33 §69","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Wendal SA makes a loss of €720,000 attributable to ordinary holders, with 4,000,000 shares as a weighted average. Calculate the basic earnings per share to present (the loss is entered as a negative, rounded to two decimals).","es":""},"explanation":{"fr":"","en":"-720,000 / 4,000,000 = loss of €0.18 per share, presented as a negative result (IAS 33, para. 69).","es":""},"common_error":{"fr":"","en":"Not presenting earnings per share because the amount is negative.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"s1","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":-0.18,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000095","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EQUAL_PROMINENCE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-face"},"references":["IAS 33 §66"],"exercise":{"prompt":{"fr":"","en":"A draft income statement presents the current year's earnings per share. Which presentation of the prior-year comparative complies with IAS 33?","es":""},"explanation":{"fr":"","en":"Rule to remember: earnings per share is presented with equal prominence for all periods presented (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Treating the comparative as secondary information.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The same amount, in the same place and with the same visibility as the current year's","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The comparative is in a note, with a one-line reminder under the income statement","es":""},"correct":false,"feedback":{"fr":"","en":"All periods presented receive the same prominence on the face of the statement (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"The comparative is on the face of the statement, but without diluted earnings, judged less useful","es":""},"correct":false,"feedback":{"fr":"","en":"Basic and diluted earnings are presented for each period, with the same prominence (IAS 33, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"The comparative is presented in smaller type, the current year remaining the main information","es":""},"correct":false,"feedback":{"fr":"","en":"Equal prominence rules out giving one period less emphasis (IAS 33, para. 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000096","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.DISCONTINUED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCONTINUED_NOTES_TRUE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-discontinued"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"The entity may disclose the discontinued operation's earnings per share in the notes rather than on the face of the income statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: the earnings per share of a discontinued operation is disclosed on the face of the statement or in the notes (IAS 33, para. 68).","es":""},"common_error":{"fr":"","en":"Believing that the face of the statement is mandatory.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000097","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE","IAS33.PRESENTATION.DISCONTINUED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"PRESENTATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"pitfalls"},"references":["IAS 33 §66","IAS 33 §68","IAS 33 §69"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the presentation of earnings per share.","es":""},"explanation":{"fr":"","en":"Rule to remember: face of the statement, basic and diluted, two profits, equal prominence, including in the case of a loss (IAS 33, paras. 66 and 69).","es":""},"common_error":{"fr":"","en":"Downplaying the comparative or the diluted figure.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Diluted earnings per share is presented on the face of the statement, but basic earnings may stay in the notes.","es":""},"erroneous":true,"correction":{"fr":"","en":"Both basic and diluted earnings are presented on the face of the statement (IAS 33, para. 66).","es":""}},{"id":"s2","text":{"fr":"","en":"Earnings per share is given for continuing operations and for total profit attributable to ordinary holders.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The comparative periods are presented with less emphasis than the current period.","es":""},"erroneous":true,"correction":{"fr":"","en":"Earnings per share has equal prominence for all periods presented (IAS 33, para. 66).","es":""}},{"id":"s4","text":{"fr":"","en":"A loss per share is presented as a negative earnings per share.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000098","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE","IAS33.BASIC.FORMULA"],"dimension":"APPLICATION","format":"MINI_CASE","context":"MEDIA","tested_point":"TWO_CLASSES_OF_ORDINARY_SHARES","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-face"},"references":["IAS 33 §66","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Present Harvane SA's earnings per share, which has two classes of ordinary shares.","es":""},"explanation":{"fr":"","en":"Each class with different rights has its own earnings per share, presented on the face of the statement (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Calculating an average amount for classes with different rights.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Harvane SA has two classes of ordinary shares with different rights to profit. Case data: profit attributable to class A ordinary holders €960,000, for 2,000,000 shares as a weighted average; to class B €360,000, for 1,200,000 shares. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate basic earnings per share of each class.","es":""},"explanation":{"fr":"","en":"960,000 / 2,000,000 = €0.48; 360,000 / 1,200,000 = €0.30 (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Computing one EPS for both classes: each class has its own earnings and share count.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Class A","es":""},"answer":0.48,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Class B","es":""},"answer":0.3,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Class A","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"profit attributable to class A ordinary holders €960,000","es":""},"value":960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"for 2,000,000 shares as a weighted average","es":""},"value":2000000}],"result":0.48,"unit":"EUR"}],"references":["REF.IAS33.66"]}},{"prompt":{"fr":"","en":"How is earnings per share presented?","es":""},"explanation":{"fr":"","en":"Rule to remember: an earnings per share figure is presented for each class of ordinary shares with different rights to profit (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Aggregating classes with different rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a single amount for the ordinary shares as a whole, without distinguishing the classes","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for presentation for each class with different rights (IAS 33, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"For class A, the largest, class B being mentioned in the notes","es":""},"correct":false,"feedback":{"fr":"","en":"Each class with different rights has an amount on the face of the statement (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"In the notes, by class, the amounts being regarded as detailed","es":""},"correct":false,"feedback":{"fr":"","en":"Earnings per share appears on the face of the income statement (IAS 33, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"On the face of the income statement, for each class of ordinary shares with different rights","es":""},"correct":true}],"id":"p2","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000099","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IFRS5","IAS33.PRESENTATION.DISCONTINUED"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSUMER","tested_point":"IFRS5_BOUNDARY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-ifrs5"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"A group is selling a branch and asks whether it is a discontinued operation and what its result includes. Which standard answers that question, and what does IAS 33 ask next?","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 5 classifies the discontinued operation; IAS 33 presents its earnings per share on the face or in the notes (IAS 33, para. 68).","es":""},"common_error":{"fr":"","en":"Attributing IFRS 5's classification criteria to IAS 33.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 33 classifies the discontinued operation; IFRS 5 then sets that operation's earnings per share","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: IFRS 5 classifies, IAS 33 presents earnings per share (IAS 33, para. 68).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 5 classifies the operation and its result; IAS 33 asks for that operation's earnings per share, on the face or in the notes","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 5 answers both questions, and IAS 33 requests no information on the discontinued operation","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 33 asks for the discontinued operation's earnings per share (IAS 33, para. 68).","es":""}},{"id":"D","text":{"fr":"","en":"IAS 1 answers the first question, IFRS 5 merely dealing with presentation of earnings per share","es":""},"correct":false,"feedback":{"fr":"","en":"It is IFRS 5 that classifies the discontinued operation; earnings per share is a matter for IAS 33 (IAS 33, para. 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000100","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS1_IFRS18","IAS33.PRESENTATION.FACE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SEPARATE_STATEMENT_PLACEMENT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS33.000011","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-ias1"},"references":["IAS 33 §66"],"exercise":{"prompt":{"fr":"","en":"An entity presents the components of its profit in a separate statement apart from the statement of comprehensive income. Where does IAS 33 place basic and diluted earnings per share?","es":""},"explanation":{"fr":"","en":"Rule to remember: if the components of profit are in a separate statement, earnings per share is presented only in that statement (IAS 33).","es":""},"common_error":{"fr":"","en":"Duplicating earnings per share in both statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the statement of comprehensive income, which is the period's summary statement","es":""},"correct":false,"feedback":{"fr":"","en":"Where the components of profit are in a separate statement, earnings per share is presented there (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"In both statements, so that the figure appears in the statement the reader consults","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask for earnings per share to be duplicated: one statement carries it (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"In the notes, neither statement having to carry earnings per share","es":""},"correct":false,"feedback":{"fr":"","en":"Earnings per share is presented in the statement that carries the components of profit, not in a note (IAS 33, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"In that separate statement that carries the components of profit","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000101","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION","IAS33.DILUTED.NUMERATOR","IAS33.BASIC.PREFERENCE_DIVIDENDS"],"dimension":"CALCULATION","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"RECONCILIATION_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":220,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"numeric-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"Prepare the reconciliation of Ilvane SA's numerators and denominators.","es":""},"explanation":{"fr":"","en":"The diluted numerator is reconciled to the parent's profit; the diluted denominator is reconciled to the basic number, instrument by instrument (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Forgetting the preference dividends in the basic numerator.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: profit attributable to the parent €2,100,000; after-tax preference dividends €100,000; weighted average number 5,000,000. Convertible bond: €84,000 of after-tax interest, 600,000 shares. Options: 200,000 additional shares (treasury share method), no numerator adjustment. Both instruments are dilutive. Amounts per share rounded to two decimals.","es":""},"parts":[{"prompt":{"fr":"","en":"Prepare the numerator reconciliation: basic numerator and diluted numerator.","es":""},"explanation":{"fr":"","en":"2,100,000 - 100,000 = €2,000,000; 2,000,000 + 84,000 + 0 = €2,084,000 (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Starting from profit without deducting preference dividends: the basic numerator is attributable to ordinary shareholders.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Basic numerator","es":""},"answer":2000000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Diluted numerator","es":""},"answer":2084000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Basic numerator","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"profit attributable to the parent €2,100,000","es":""},"value":2100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"after-tax preference dividends €100,000","es":""},"value":100000,"unit":"EUR"}],"result":2000000,"unit":"EUR"}],"references":["REF.IAS33.70"]}},{"prompt":{"fr":"","en":"Prepare the denominator reconciliation: effect of each instrument and diluted number.","es":""},"explanation":{"fr":"","en":"5,000,000 + 600,000 + 200,000 = 5,800,000 (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Forgetting an instrument's effect in the diluted denominator: the potential shares of each dilutive instrument are added.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"c","label":{"fr":"","en":"Effect of the convertible bond","es":""},"answer":600000,"tolerance":0,"unit":"UNITS"},{"id":"d","label":{"fr":"","en":"Effect of the options","es":""},"answer":200000,"tolerance":0,"unit":"UNITS"},{"id":"e","label":{"fr":"","en":"Diluted number","es":""},"answer":5800000,"tolerance":0,"unit":"UNITS"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"e","meaning":{"fr":"","en":"Diluted number","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"weighted average number 5,000,000","es":""},"value":5000000},{"symbol":"b","meaning":{"fr":"","en":"Effect of the convertible bond","es":""},"value":600000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Effect of the options","es":""},"value":200000,"unit":"UNITS"}],"result":5800000,"unit":"UNITS"}],"rationale":{"fr":"","en":"5,000,000 + 600,000 + 200,000 = 5,800,000 (IAS 33, para. 70).","es":""},"references":["REF.IAS33.70"]}},{"prompt":{"fr":"","en":"Calculate basic and diluted earnings per share.","es":""},"explanation":{"fr":"","en":"2,000,000 / 5,000,000 = €0.40; 2,084,000 / 5,800,000 = €0.36 (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Using the basic numerator for diluted EPS: diluted EPS divides the diluted numerator by the diluted share count.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"f","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.4,"tolerance":0,"unit":"EUR"},{"id":"g","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.36,"tolerance":0,"unit":"EUR"}],"id":"p3","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000102","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NUMERATOR_RECON_CONTENT","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"In the earnings per share note, which numerator reconciliation satisfies IAS 33?","es":""},"explanation":{"fr":"","en":"Rule to remember: the numerators are reconciled to profit attributable to the parent, with the individual effect of each class of instruments (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Giving amounts without linking them to the parent's profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A table giving consolidated net profit and the year's dividend per share","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation starts from profit attributable to the parent and covers the numerators; the dividend is not part of it (IAS 33, para. 70).","es":""}},{"id":"B","text":{"fr":"","en":"The mention of the diluted numerator, with no bridge from the parent's profit","es":""},"correct":false,"feedback":{"fr":"","en":"The text asks for a reconciliation to profit attributable to the parent (IAS 33, para. 70).","es":""}},{"id":"C","text":{"fr":"","en":"A reconciliation of profit attributable to the parent to the basic and diluted numerators, with the effect of each class of instruments","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A numerator reconciliation based on each instrument's pre-tax result","es":""},"correct":false,"feedback":{"fr":"","en":"The numerator adjustments are after tax, as is the calculation itself (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000103","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DENOMINATOR_RECON_TRUE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"The denominator reconciliation shows the individual effect of each class of instruments between the basic number and the diluted number.","es":""},"explanation":{"fr":"","en":"Rule to remember: the basic and diluted denominators are reconciled to each other, with the individual effect of each class of instruments (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Providing a single diluted number with no breakdown.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000104","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RECONCILIATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"pitfalls"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the reconciliation required by IAS 33.","es":""},"explanation":{"fr":"","en":"Rule to remember: two reconciliations, numerators and denominators, with the individual effect of each class of instruments (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Settling for an overall effect or a single reconciliation.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The reconciliation concerns the denominator, the numerators being given with no link to profit.","es":""},"erroneous":true,"correction":{"fr":"","en":"The numerators are also reconciled to profit attributable to the parent (IAS 33, para. 70).","es":""}},{"id":"s2","text":{"fr":"","en":"The basic and diluted denominators are reconciled to each other, but the overall effect of the instruments is shown, with no breakdown by class.","es":""},"erroneous":true,"correction":{"fr":"","en":"The individual effect of each class of instruments is shown (IAS 33, para. 70).","es":""}},{"id":"s3","text":{"fr":"","en":"The weighted average number used as the basic denominator is among the information provided.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The basic and diluted numerators are reconciled to profit attributable to the parent.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000105","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.ANTIDILUTIVE_SUBSEQUENT"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"TECHNOLOGY","tested_point":"ANTIDILUTIVE_EXCLUDED_DISCLOSURE","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-antidilutive"},"references":["IAS 33"],"exercise":{"prompt":{"fr":"","en":"For the period presented, some of Clavane SA's options were excluded from diluted earnings because they were antidilutive. What does the entity provide in its note, beyond the reconciliation?","es":""},"explanation":{"fr":"","en":"Rule to remember: instruments excluded from the diluted calculation because antidilutive for the period presented are the subject of a disclosure (IAS 33).","es":""},"common_error":{"fr":"","en":"Thinking an antidilutive instrument disappears from the note.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No disclosure, an instrument excluded from the calculation no longer needing to appear in the disclosures","es":""},"correct":false,"feedback":{"fr":"","en":"Instruments excluded because antidilutive are the subject of an additional disclosure (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Information on the instruments excluded because they were antidilutive for the period presented","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The diluted calculation redone including the options, presented as an alternative","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for the excluded instruments to be flagged, not for a second calculation to be presented (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"The options' expiry date, these instruments no longer affecting the ratio","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure concerns instruments excluded because antidilutive for the period (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000106","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.OTHER_PER_SHARE","IAS33.INTERACTIONS.IAS1_IFRS18"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"OTHER_PER_SHARE_AMOUNT","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-other"},"references":["IAS 33 §73"],"exercise":{"prompt":{"fr":"","en":"An entity publishes, in addition to basic and diluted earnings per share, a per-share amount based on another reported component of profit. What does IAS 33 say about that amount?","es":""},"explanation":{"fr":"","en":"Rule to remember: per-share amounts based on another reported component of profit also fall under IAS 33 (IAS 33).","es":""},"common_error":{"fr":"","en":"Regarding the additional amount as free of any rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The standard does not concern it: basic and diluted earnings are the ones within IAS 33","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 33 also applies to per-share amounts based on another reported component of profit (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It may be calculated freely, with the numerator and denominator the entity finds useful","es":""},"correct":false,"feedback":{"fr":"","en":"The standard applies to these amounts and the numerators allowed are specified by the IFRS 18 amendments (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The standard applies to that amount too, its numerator depending on the applicable edition, notably IFRS 18","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It must replace basic earnings per share on the face of the income statement","es":""},"correct":false,"feedback":{"fr":"","en":"The additional amount adds to basic and diluted earnings without replacing them (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000107","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS32","IAS33.BASIC.PREFERENCE_DIVIDENDS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"LIABILITY_PREFERENCE_DIVIDENDS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-ias32"},"references":["IAS 33 §13","IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"Cormel SA's preference shares are classified as liabilities under IAS 32; their €80,000 dividend for the year has been recognised as an expense. Profit attributable to the parent is €1,900,000. What is done with that dividend for the basic numerator?","es":""},"explanation":{"fr":"","en":"Rule to remember: dividends on preference shares classified as liabilities are included in profit for the period and are not deducted a second time (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating a liability-classified dividend like an equity preference dividend.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is deducted again, for a numerator of €1,820,000, like an ordinary preference dividend","es":""},"correct":false,"feedback":{"fr":"","en":"The dividend on shares classified as liabilities is already in profit; deducting it would count it twice (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Nothing more is deducted: the dividend is already in profit, the numerator stays €1,900,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is added to profit, for a numerator of €1,980,000, since it is a finance cost","es":""},"correct":false,"feedback":{"fr":"","en":"No addition is provided for basic earnings: the expense stays in profit (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Half is deducted, the IAS 32 liability classification being merely indicative for the application of IAS 33","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 32 classification determines whether the dividend is already in profit (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS33.000108","source":"V2","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS32","IAS33.DISCLOSURE.OTHER_PER_SHARE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"FINANCE","tested_point":"CLASSIFICATION_DRIVES_NUMERATOR_FALSE","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS33.000012","review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"judgment"},"references":["IAS 33 §13"],"exercise":{"prompt":{"fr":"","en":"Whatever the IAS 32 classification of its preference shares, the entity always deducts their dividend from profit attributable to the parent as a preference dividend.","es":""},"explanation":{"fr":"","en":"Rule to remember: the IAS 32 classification decides: as a liability, the dividend is already an expense in profit; as equity, it is deducted as a preference dividend (IAS 33).","es":""},"common_error":{"fr":"","en":"Ignoring the classification of the preference shares.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000001","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000001","tested_point":"QST.IAS33.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-objective"},"references":["IAS 33 §1"],"exercise":{"prompt":{"fr":"","en":"IAS 33 prescribes the principles for determining and presenting earnings per share so as to improve performance comparisons between entities in the same period and for the same entity from one period to the next.","es":""},"explanation":{"fr":"","en":"The standard sets principles for determining and presenting earnings per share in order to improve performance comparisons between entities in the same period and for the same entity from one period to the next (IAS 33, para. 1). Trap: seeing it as a standard that dictates the amount of profit to report, when it frames the method of calculation and presentation. Rule to remember: Earnings per share is standardised so that performance remains comparable between entities and between periods (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that the standard dictates the amount of profit to report.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000002","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000002","tested_point":"QST.IAS33.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-objective"},"references":["IAS 33 §1"],"exercise":{"prompt":{"fr":"","en":"To improve the comparison of performance, which element of the earnings per share calculation does IAS 33 emphasise most?","es":""},"explanation":{"fr":"","en":"The standard aims to improve the comparison of performance by prescribing the principles for determining and presenting earnings per share, with an emphasis on the denominator of the calculation (IAS 33, para. 1). Trap: thinking that comparability rests above all on the numerator. Rule to remember: IAS 33 emphasises the denominator, that is, the number of shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that the standard mainly frames the profit figure in the numerator.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The numerator, that is, the choice of the income and expenses included in profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard's emphasis is on the denominator of the calculation, not on the composition of the profit for the period (IAS 33). Rule to remember: The standard's comparability objective is served first by determining the number of shares (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The denominator, that is, the determination of the number of shares taken into account.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The share price at the reporting date, which is a common basis for the entities compared.","es":""},"correct":false,"feedback":{"fr":"","en":"The share price is not the element around which the standard organises the comparison of performance: it deals with the calculation of earnings per share and above all with its denominator (IAS 33). Rule to remember: Comparability concerns earnings per share, calculated with a properly determined number of shares (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"The amount of dividends paid, which measures the performance distributed to shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard deals with the determination and presentation of earnings per share, with the emphasis on the denominator; dividends paid are not the central element of this comparison (IAS 33). Rule to remember: The emphasis is on the number of shares in the denominator (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000003","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.ENTITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS33.000001","tested_point":"VG.IAS33.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-scope"},"references":["IAS 33 §2"],"exercise":{"prompt":{"fr":"","en":"A family company whose ordinary shares are not traded in a public market, and which has not filed a document with a securities regulator, must present earnings per share under IAS 33 because it has issued ordinary shares.","es":""},"explanation":{"fr":"","en":"The scope of the standard is defined by the market: ordinary or potential ordinary shares traded in a public market, or filing of the financial statements with a securities regulator in order to issue ordinary shares in a public market (IAS 33, para. 2). In the case presented neither criterion is met: having issued ordinary shares is not enough. Trap: confusing having shares with falling within the scope. Rule to remember: It is public trading, or filing with a view to a public issue, that places the entity within the scope (IAS 33).","es":""},"common_error":{"fr":"","en":"Applying the standard to any company with shares, listed or not.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000004","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.ENTITIES"],"dimension":"APPLICATION","context":"V1_VG.IAS33.000001","tested_point":"VG.IAS33.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-scope"},"references":["IAS 33 §2"],"exercise":{"prompt":{"fr":"","en":"Orbane SA, the parent of a group, is preparing its stock market flotation. It has just filed its financial statements with the financial markets authority in order to issue ordinary shares in a public market; its shares are not yet traded. Does Orbane fall within the scope of IAS 33 for its separate and consolidated financial statements?","es":""},"explanation":{"fr":"","en":"An entity is within the scope if its ordinary or potential ordinary shares are traded in a public market or if it files its financial statements with a regulator in order to issue ordinary shares in a public market; the same criterion applies to the consolidated financial statements of a group whose parent meets it (IAS 33, para. 2). Orbane files its financial statements with a view to a public issue: it is within the scope. Trap: waiting for the actual listing. Rule to remember: Filing with a view to a public issue of ordinary shares already places the entity within the scope (IAS 33).","es":""},"common_error":{"fr":"","en":"Waiting for the shares to be actually listed before applying the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, as long as its ordinary shares are not traded in a public market, even if the filing with the regulator is already advanced and the issue planned shortly.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not limited to shares already traded: filing the financial statements with a regulator with a view to a public issue of ordinary shares also meets it (IAS 33). Rule to remember: Public trading or filing with a view to a public issue: either places the entity within the scope (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"No, because a filing with a securities regulator is not among the criteria for applying the standard, whether or not the entity prepares consolidated financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Filing the financial statements with a regulator in order to issue ordinary shares in a public market is one of the two scope criteria (IAS 33). Rule to remember: The scope covers public trading and filing with a view to a public issue (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, but the standard then applies to its consolidated financial statements and not to its separate financial statements, which remain outside the scope.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion applies to the separate financial statements of the entity that meets it, and the same criterion applies to the consolidated financial statements of the group of which it is the parent (IAS 33). Rule to remember: Both sets of financial statements are covered when the entity, or the parent of the group, meets the criterion (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, for its separate and its consolidated financial statements, since filing with a view to a public issue of ordinary shares meets the criterion.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000005","standard_id":"IAS33","concept_ids":["IAS33.SCOPE.SEPARATE_CONSOLIDATED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000005","tested_point":"QST.IAS33.000005","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000001","section_id":"rule-consolidated"},"references":["IAS 33 §4"],"exercise":{"prompt":{"fr":"","en":"When an entity presents both consolidated and separate financial statements, it may limit the earnings per share information to the consolidated data.","es":""},"explanation":{"fr":"","en":"When an entity presents both consolidated and separate financial statements, the standard allows it to limit the earnings per share information to the consolidated data (IAS 33, para. 4). Trap: deducing that two earnings per share figures are required, one for each set of financial statements. Rule to remember: The earnings per share information may be limited to the consolidated data (IAS 33).","es":""},"common_error":{"fr":"","en":"Thinking that a separate earnings per share figure is required in addition to the consolidated one.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000006","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000006","tested_point":"QST.IAS33.000006","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-ordinary"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"A company has issued a bond convertible into ordinary shares, not yet converted. How does IAS 33 characterise this instrument?","es":""},"explanation":{"fr":"","en":"A potential ordinary share is a financial instrument or other contract that may entitle its holder to ordinary shares (IAS 33, para. 5). The unconverted convertible bond is an example: until conversion takes place, no ordinary share is in issue on that account. Trap: treating the bond as if the shares already existed. Rule to remember: An instrument that may entitle its holder to ordinary shares is a potential ordinary share (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Treating an unconverted convertible bond as an ordinary share in issue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A potential ordinary share, that is, an instrument that may entitle its holder to ordinary shares.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An ordinary share, that is, an equity instrument subordinate to the other classes of equity instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"As long as it is not converted, the bond does not have the status of an ordinary share: it can only entitle its holder to ordinary shares, which makes it potential (IAS 33, para. 5). Rule to remember: An instrument that may entitle its holder to ordinary shares is a potential ordinary share (IAS 33, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"An option or a warrant, that is, an instrument giving its holder the right to buy ordinary shares.","es":""},"correct":false,"feedback":{"fr":"","en":"Options and warrants are instruments giving the right to buy ordinary shares; the convertible bond is another instrument that may entitle its holder to ordinary shares, without being an option (IAS 33, para. 5). Rule to remember: The general category is that of the potential ordinary share (IAS 33, para. 5).","es":""}},{"id":"D","text":{"fr":"","en":"A contingently issuable ordinary share, that is, a share issuable for little or no consideration when the conditions of an agreement are met.","es":""},"correct":false,"feedback":{"fr":"","en":"A contingently issuable share is issuable for little or no consideration when the conditions of an agreement are met; that is not the case of a bond its holder may convert (IAS 33, para. 5). Rule to remember: A convertible bond falls within potential ordinary shares (IAS 33, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000007","standard_id":"IAS33","concept_ids":["IAS33.DEFINITIONS.SHARES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000007","tested_point":"QST.IAS33.000007","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-ordinary"},"references":["IAS 33 §5"],"exercise":{"prompt":{"fr":"","en":"Cormeil SA, a listed company, has the following instruments in issue. Which of them are potential ordinary shares under IAS 33? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Potential ordinary shares are financial instruments or contracts that may entitle their holder to ordinary shares: options and warrants, contingently issuable shares, convertible instruments (IAS 33, para. 5). The warrants, the contingent shares and the convertible bond meet this definition; ordinary shares already in issue are ordinary shares, and non-convertible preference shares give no right to ordinary shares. Trap: confusing existing shares with rights over future shares. Rule to remember: A potential ordinary share is an instrument that may entitle its holder to ordinary shares (IAS 33, para. 5).","es":""},"common_error":{"fr":"","en":"Counting non-convertible preference shares among potential ordinary shares.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fully paid ordinary shares, issued several years ago and held by the public.","es":""},"correct":false,"feedback":{"fr":"","en":"An ordinary share already issued is an ordinary share, not an instrument that can merely entitle its holder to such shares (IAS 33, para. 5). Rule to remember: A potential share is an instrument that may entitle its holder to ordinary shares, not a share already in issue (IAS 33, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"Warrants giving their holder the right to buy ordinary shares of Cormeil.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Ordinary shares to be delivered to the seller of a subsidiary if a target revenue is reached, for little or no consideration.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Non-convertible preference shares, which give no right to ordinary shares.","es":""},"correct":false,"feedback":{"fr":"","en":"An instrument is a potential ordinary share if it may entitle its holder to ordinary shares; non-convertible preference shares open no right of that kind (IAS 33, para. 5). Rule to remember: Without a possible right to ordinary shares, an instrument is not a potential ordinary share (IAS 33, para. 5).","es":""}},{"id":"E","text":{"fr":"","en":"A bond convertible into ordinary shares at the holder's option.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000008","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000008","tested_point":"QST.IAS33.000008","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"For the year, Vermeil SA earned a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros). Its weighted average number of ordinary shares outstanding is {weighted_shares}; at the reporting date, 2,000,000 ordinary shares are outstanding. Calculate basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 2,340,000 / 1,800,000 = 1.30: basic earnings per share is the profit attributable to ordinary equity holders divided by the weighted average number of ordinary shares outstanding during the period (IAS 33, para. 10). The 2,000,000 shares at the reporting date are not the denominator. Trap: dividing by the number of shares at period end, which would give 1.17. Rule to remember: The denominator of basic earnings per share is the weighted average number of shares outstanding (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Dividing the profit by the number of shares outstanding at the reporting date.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"2340000","unit":"EUR"},{"id":"weighted_shares","value":"1800000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"2340000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"1800000","unit":"UNITS"}],"steps":[{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.3,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":2340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1800000,"unit":"UNITS"}],"result":1.3,"unit":"EUR","rationale":{"fr":"","en":"Approach: 2,340,000 / 1,800,000 = 1.30: basic earnings per share is the profit attributable to ordinary equity holders divided by the weighted average number of ordinary shares outstanding during the period (IAS 33, para. 10).","es":""}}],"rationale":{"fr":"","en":"The denominator of basic earnings per share is the weighted average number of shares outstanding (IAS 33, para. 10).","es":""},"references":["REF.IAS33.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000009","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000009","tested_point":"QST.IAS33.000009","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §9","IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Lorient SA describes the basic earnings per share calculation in a working note. Which sentence of this note is incorrect?","es":""},"explanation":{"fr":"","en":"The denominator is not the number of shares at the reporting date: it is the weighted average number of ordinary shares outstanding during the period (IAS 33, para. 10). The other three sentences correctly describe the numerator, the weighted denominator and the calculation for continuing operations (IAS 33, para. 9). Trap: using a number of shares at one date instead of a weighted average. Rule to remember: Basic earnings per share is divided by the weighted average number of shares outstanding (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Using the number of shares at the reporting date as the denominator.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The numerator is the profit attributable to the ordinary equity holders of the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: basic earnings per share is calculated for the profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9). Rule to remember: The numerator of basic earnings per share is the profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"The denominator is the weighted average number of ordinary shares outstanding during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the number of shares in the denominator is a weighted average over the period (IAS 33, para. 10). Rule to remember: The denominator of basic earnings per share is the weighted average number of ordinary shares outstanding (IAS 33, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The denominator is the number of ordinary shares outstanding at the end of the reporting period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The calculation is also made for profit from continuing operations, when the entity presents them separately.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: if the entity presents continuing operations separately, basic earnings per share is also calculated for their profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9). Rule to remember: The calculation applies to total profit and, where relevant, to that of continuing operations (IAS 33, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000010","standard_id":"IAS33","concept_ids":["IAS33.BASIC.FORMULA","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000010","tested_point":"QST.IAS33.000010","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §9","IAS 33 §10","IAS 33 §20","IAS 33 §21"],"exercise":{"prompt":{"fr":"","en":"At 1 January, Aubrac SA has {opening_shares} ordinary shares outstanding. On 1 April it issues {issued_shares} shares for cash, received on that date: these shares are outstanding for {months_outstanding} months of the year (weighting in months, an approximation of the day-based time factor adopted for the case). The profit attributable to ordinary equity holders for the year ended 31 December is {earnings_ordinary} (in euros). Calculate the weighted average number of ordinary shares, then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 1,000,000 + 240,000 x 9 / 12 = 1,180,000 shares; 2,065,000 / 1,180,000 = 1.75. Shares issued count from the date the consideration is receivable, weighted by time (IAS 33, paras. 20 and 21), and the profit is divided by the weighted average number (IAS 33, para. 10). Trap: counting the 240,000 shares in full, which would give 1.67. Rule to remember: The weighted average number reflects the issues of the period according to the time elapsed (IAS 33, para. 10).","es":""},"common_error":{"fr":"","en":"Counting shares issued during the year in full.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"1000000","unit":"UNITS"},{"id":"issued_shares","value":"240000","unit":"UNITS"},{"id":"months_outstanding","value":"9","unit":"MONTHS"},{"id":"earnings_ordinary","value":"2065000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Ordinary shares outstanding at 1 January","es":""},"value":"1000000","unit":"UNITS"},{"label":{"fr":"","en":"Shares issued on 1 April","es":""},"value":"240000","unit":"UNITS"},{"label":{"fr":"","en":"Months outstanding of the shares issued","es":""},"value":"9","unit":"MONTHS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"2065000","unit":"EUR"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":1180000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.75,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a + b * c / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares outstanding at 1 January","es":""},"value":1000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on 1 April","es":""},"value":240000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months outstanding of the shares issued","es":""},"value":9,"unit":"MONTHS"}],"result":1180000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":2065000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1180000,"unit":"UNITS"}],"result":1.75,"unit":"EUR"}],"rationale":{"fr":"","en":"The weighted average number reflects the issues of the period according to the time elapsed (IAS 33, para. 10).","es":""},"references":["REF.IAS33.10","REF.IAS33.20","REF.IAS33.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000011","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000011","tested_point":"QST.IAS33.000011","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9"],"exercise":{"prompt":{"fr":"","en":"Basic earnings per share is calculated for the profit attributable to the ordinary equity holders of the parent and, if the entity presents continuing operations separately, also for the profit from those operations attributable to those holders.","es":""},"explanation":{"fr":"","en":"The calculation is made for the profit attributable to the ordinary equity holders of the parent and, when the entity presents continuing operations separately, for the profit from continuing operations attributable to those same holders (IAS 33, para. 9). Trap: starting from the group's total profit without distinguishing the share that belongs to the parent. Rule to remember: The numerator relates to the parent's ordinary equity holders, for the total and for any continuing operations presented (IAS 33, para. 9).","es":""},"common_error":{"fr":"","en":"Taking the group's total profit as the numerator without deducting the share of other interests.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000012","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000012","tested_point":"QST.IAS33.000012","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9"],"exercise":{"prompt":{"fr":"","en":"The Fontane group has a profit for the year of {profit_for_year} (in euros), of which {nci_share} belongs to non-controlling interests. The parent also declared, for the year, non-cumulative preference dividends of {pref_dividends}, net of any tax effect, on preference shares classified as equity. Calculate the profit attributable to the ordinary equity holders of the parent, the numerator of basic earnings per share.","es":""},"explanation":{"fr":"","en":"Approach: 3,150,000 − 450,000 − 120,000 = 2,580,000. We take the part of profit that belongs to the ordinary equity holders of the parent (IAS 33, para. 9), then deduct the preference dividends after tax (IAS 33). Trap: starting from the group's total profit or forgetting the preference dividends. Rule to remember: The numerator is the profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9), after preference dividends (IAS 33).","es":""},"common_error":{"fr":"","en":"Taking the group's total profit without deducting the share of non-controlling interests.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_for_year","value":"3150000","unit":"EUR"},{"id":"nci_share","value":"450000","unit":"EUR"},{"id":"pref_dividends","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Group profit for the year","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Share of non-controlling interests","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Preference dividends declared, after tax","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"EARNINGS_ORDINARY","label":{"fr":"","en":"Profit attributable to ordinary equity holders of the parent","es":""},"answer":2580000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EARNINGS_ORDINARY","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders of the parent","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Group profit for the year","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of non-controlling interests","es":""},"value":450000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Preference dividends declared, after tax","es":""},"value":120000,"unit":"EUR"}],"result":2580000,"unit":"EUR"}],"rationale":{"fr":"","en":"The numerator is the profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9), after preference dividends (IAS 33).","es":""},"references":["REF.IAS33.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000013","standard_id":"IAS33","concept_ids":["IAS33.BASIC.EARNINGS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000013","tested_point":"QST.IAS33.000013","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9"],"exercise":{"prompt":{"fr":"","en":"For the year, the profit attributable to the ordinary equity holders of the parent of Clairval SA, before preference dividends, is {profit_parent} (in euros). It includes a post-tax profit from discontinued operations of {discontinued_profit}. The preference shares, cumulative and classified as equity, carry dividends for the year of {pref_dividends}, net of any tax effect. Preference dividends are deducted from the profit of continuing operations as well as from total profit (IAS 33, para. 12). Calculate the profit attributable to ordinary equity holders, first for total profit and then for continuing operations.","es":""},"explanation":{"fr":"","en":"Approach: total 4,200,000 − 300,000 = 3,900,000; continuing operations 4,200,000 − 700,000 − 300,000 = 3,200,000. The calculation is made for the profit attributable to ordinary equity holders, total and for continuing operations (IAS 33, para. 9), after deducting preference dividends net of tax in both cases, as the standard requires (IAS 33, para. 12). Trap: forgetting to deduct the preference dividends from the profit of continuing operations. Rule to remember: Preference dividends are deducted from total profit and from that of continuing operations alike (IAS 33, para. 12).","es":""},"common_error":{"fr":"","en":"Deducting the preference dividends from total profit only.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"4200000","unit":"EUR"},{"id":"discontinued_profit","value":"700000","unit":"EUR"},{"id":"pref_dividends","value":"300000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"4200000","unit":"EUR"},{"label":{"fr":"","en":"Post-tax profit from discontinued operations","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Preference dividends for the year, after tax","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"TOTAL_EARNINGS","label":{"fr":"","en":"Total profit attributable to ordinary equity holders","es":""},"answer":3900000,"tolerance":0,"unit":"EUR"},{"id":"CONTINUING_EARNINGS","label":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"answer":3200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_EARNINGS","meaning":{"fr":"","en":"Total profit attributable to ordinary equity holders","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":4200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividends for the year, after tax","es":""},"value":300000,"unit":"EUR"}],"result":3900000,"unit":"EUR"},{"step":"CONTINUING_EARNINGS","meaning":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":4200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-tax profit from discontinued operations","es":""},"value":700000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Preference dividends for the year, after tax","es":""},"value":300000,"unit":"EUR"}],"result":3200000,"unit":"EUR"}],"rationale":{"fr":"","en":"Preference dividends are deducted from total profit and from that of continuing operations alike (IAS 33, para. 12).","es":""},"references":["REF.IAS33.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000014","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.EARNINGS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000014","tested_point":"QST.IAS33.000014","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9"],"exercise":{"prompt":{"fr":"","en":"Malvoisin SA has issued preference shares classified as equity. What adjustment does it make to the profit attributable to the parent to arrive at the numerator of basic earnings per share?","es":""},"explanation":{"fr":"","en":"For basic earnings per share, the profit attributable to the ordinary equity holders of the parent (IAS 33, para. 9) is adjusted for the after-tax amounts of preference dividends, settlement differences and similar effects of preference shares classified as equity (IAS 33). Trap: omitting this adjustment or making it before tax. Rule to remember: The numerator of basic earnings per share is reduced by preference dividends after tax (IAS 33).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the preference dividends, or deducting them before tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It deducts the preference dividends, at their pre-tax amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment relates to the after-tax amount of preference dividends, not their pre-tax amount (IAS 33). Rule to remember: Preference dividends are deducted after tax (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It deducts the dividends paid to ordinary shareholders during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Dividends paid to ordinary shareholders are not the adjustment concerned: the numerator of basic earnings per share is adjusted for preference dividends and similar effects of preference shares (IAS 33). Rule to remember: The adjustment relates to the preference shares, not the ordinary shares (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It leaves the numerator unchanged and instead adjusts the number of shares in the denominator.","es":""},"correct":false,"feedback":{"fr":"","en":"Preference shares classified as equity lead to adjusting the numerator for the after-tax preference dividends (IAS 33). Rule to remember: The adjustment for preference dividends is made to the numerator (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It deducts the preference dividends, at their after-tax amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000015","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000015","tested_point":"QST.IAS33.000015","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"For the year, the profit attributable to the parent of Sabaudia SA is {profit_parent} (in euros) before preference dividends. The preference shares, classified as equity, gave rise to declared dividends of {pref_dividends}, net of any tax effect; dividends of 180,000 were also declared on the ordinary shares. The weighted average number of ordinary shares is {weighted_shares}. Calculate the profit attributable to ordinary equity holders, then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 2,090,000 − 250,000 = 1,840,000; 1,840,000 / 1,600,000 = 1.15. The preference dividends after tax are deducted from the numerator (IAS 33); the adjusted profit is then divided by the weighted average number of shares (IAS 33, para. 10). Trap: not deducting the preference dividends, which would give 1.31. Rule to remember: The numerator of basic earnings per share is net of preference dividends after tax (IAS 33).","es":""},"common_error":{"fr":"","en":"Also deducting the dividends on ordinary shares from the numerator.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"2090000","unit":"EUR"},{"id":"pref_dividends","value":"250000","unit":"EUR"},{"id":"weighted_shares","value":"1600000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"2090000","unit":"EUR"},{"label":{"fr":"","en":"Preference dividends declared, after tax","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"1600000","unit":"UNITS"}],"steps":[{"id":"EARNINGS_ORDINARY","label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"answer":1840000,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.15,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EARNINGS_ORDINARY","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":2090000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividends declared, after tax","es":""},"value":250000,"unit":"EUR"}],"result":1840000,"unit":"EUR"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":1840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1600000,"unit":"UNITS"}],"result":1.15,"unit":"EUR"}],"rationale":{"fr":"","en":"The numerator of basic earnings per share is net of preference dividends after tax (IAS 33).","es":""},"references":["REF.IAS33.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000016","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREFERENCE_DIVIDENDS","IAS33.BASIC.FORMULA"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000016","tested_point":"QST.IAS33.000016","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-formula"},"references":["IAS 33 §10"],"exercise":{"prompt":{"fr":"","en":"Delmas SA has two classes of preference shares, both classified as equity, with no tax effect on their dividends. For the year, the dividends declared are {pref_a_dividend} for class A (5% of a nominal amount of 2,000,000) and {pref_b_dividend} for class B (6% of a nominal amount of 1,500,000). The profit attributable to the parent before these dividends is {profit_parent} (in euros) and the weighted average number of ordinary shares is {weighted_shares}. Calculate the profit attributable to ordinary equity holders and then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 2,740,000 − 100,000 − 90,000 = 2,550,000; 2,550,000 / 1,500,000 = 1.70. The numerator is adjusted for the after-tax preference dividends of each class classified as equity (IAS 33), then divided by the weighted average number of shares (IAS 33, para. 10). Trap: deducting only the larger class. Rule to remember: The preference dividends of each equity-classified class add up in the numerator deduction (IAS 33).","es":""},"common_error":{"fr":"","en":"Deducting the dividends of only one of the two preference classes.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"2740000","unit":"EUR"},{"id":"pref_a_dividend","value":"100000","unit":"EUR"},{"id":"pref_b_dividend","value":"90000","unit":"EUR"},{"id":"weighted_shares","value":"1500000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"2740000","unit":"EUR"},{"label":{"fr":"","en":"Class A dividends","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Class B dividends","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"1500000","unit":"UNITS"}],"steps":[{"id":"EARNINGS_ORDINARY","label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"answer":2550000,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.7,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EARNINGS_ORDINARY","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":2740000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Class A dividends","es":""},"value":100000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Class B dividends","es":""},"value":90000,"unit":"EUR"}],"result":2550000,"unit":"EUR"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":2550000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1500000,"unit":"UNITS"}],"result":1.7,"unit":"EUR"}],"rationale":{"fr":"","en":"The preference dividends of each equity-classified class add up in the numerator deduction (IAS 33).","es":""},"references":["REF.IAS33.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000017","standard_id":"IAS33","concept_ids":["IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000017","tested_point":"QST.IAS33.000017","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-cumulative"},"references":["IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Ravenel SA has cumulative preference shares, classified as equity, with a nominal amount of 4,000,000 and a 6% rate. The dividend due for the year is {pref_dividend_due}; the board decided not to declare it this year. The profit attributable to the parent before preference dividends is {profit_parent} (in euros) and the weighted average number of ordinary shares is {weighted_shares}. Calculate the profit attributable to ordinary equity holders and then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 1,640,000 − 240,000 = 1,400,000; 1,400,000 / 1,000,000 = 1.40. For cumulative preference shares, the dividend to deduct is the one due for the period, whether or not declared (IAS 33, para. 14). Trap: deducting nothing because the dividend is not declared, which would give 1.64. Rule to remember: The cumulative dividend due for the period is deducted, whether or not it is declared (IAS 33).","es":""},"common_error":{"fr":"","en":"Deducting the cumulative dividend only if it has been declared.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"1640000","unit":"EUR"},{"id":"pref_dividend_due","value":"240000","unit":"EUR"},{"id":"weighted_shares","value":"1000000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"1640000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative preference dividend due for the year","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"1000000","unit":"UNITS"}],"steps":[{"id":"EARNINGS_ORDINARY","label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"answer":1400000,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.4,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EARNINGS_ORDINARY","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":1640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative preference dividend due for the year","es":""},"value":240000,"unit":"EUR"}],"result":1400000,"unit":"EUR"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":1400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1000000,"unit":"UNITS"}],"result":1.4,"unit":"EUR"}],"rationale":{"fr":"","en":"The cumulative dividend due for the period is deducted, whether or not it is declared (IAS 33).","es":""},"references":["REF.IAS33.14"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000018","standard_id":"IAS33","concept_ids":["IAS33.BASIC.CUMULATIVE_TREATMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000018","tested_point":"QST.IAS33.000018","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-cumulative"},"references":["IAS 33 §14"],"exercise":{"prompt":{"fr":"","en":"Thalès SA has cumulative preference shares classified as equity. During the year it paid the dividend of {pref_dividend_current} due for that year, as well as {pref_arrears_paid} of dividend arrears relating to the previous year. The profit attributable to the parent before preference dividends is {profit_parent} (in euros) and the weighted average number of ordinary shares is {weighted_shares}. Calculate the profit attributable to ordinary equity holders and then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 1,900,000 − 240,000 = 1,660,000; 1,660,000 / 1,000,000 = 1.66. The dividend to deduct is the one due for the period; it excludes dividends on cumulative shares paid during the period in respect of prior periods (IAS 33, para. 14). Trap: also deducting the arrears paid, which would give 1.42. Rule to remember: Arrears paid in respect of prior periods are not deducted again (IAS 33).","es":""},"common_error":{"fr":"","en":"Deducting arrears paid in respect of prior periods.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"1900000","unit":"EUR"},{"id":"pref_dividend_current","value":"240000","unit":"EUR"},{"id":"pref_arrears_paid","value":"240000","unit":"EUR"},{"id":"weighted_shares","value":"1000000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"1900000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative preference dividend for the year","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Arrears of the previous year paid during the year","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"1000000","unit":"UNITS"}],"steps":[{"id":"EARNINGS_ORDINARY","label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"answer":1660000,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.66,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":1660000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1000000,"unit":"UNITS"}],"result":1.66,"unit":"EUR"}],"rationale":{"fr":"","en":"Arrears paid in respect of prior periods are not deducted again (IAS 33).","es":""},"references":["REF.IAS33.14"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000020","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PREF_SETTLEMENT","IAS33.BASIC.EARNINGS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000020","tested_point":"QST.IAS33.000020","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000003","section_id":"rule-earnings"},"references":["IAS 33 §9","IAS 33 §12","IAS 33 §16"],"exercise":{"prompt":{"fr":"","en":"Évaria SA buys back preference shares classified as equity for an amount that differs from their carrying amount. How does this settlement difference enter basic earnings per share?","es":""},"explanation":{"fr":"","en":"For basic earnings per share, the profit attributable to ordinary equity holders (IAS 33, para. 9) is adjusted for the after-tax amounts of preference dividends, settlement differences on preference shares and similar effects (IAS 33, paras. 12 and 16). The difference between the buy-back amount and the carrying amount is therefore part of the adjusted numerator. Trap: believing it has no effect on earnings per share because it does not go through income and expenses. Rule to remember: Settlement differences on preference shares adjust the numerator of basic earnings per share (IAS 33, paras. 12 and 16).","es":""},"common_error":{"fr":"","en":"Ignoring the difference between the consideration paid and the carrying amount when settling preference shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It does not enter: settling preference shares is a transaction with shareholders, foreign to the earnings per share calculation, with no effect on the numerator or the denominator.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard lists settlement differences on preference shares among the adjustments to profit attributable to ordinary equity holders (IAS 33). Rule to remember: The settlement difference is not neutral for basic earnings per share (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"It adjusts the numerator: it is one of the after-tax amounts by which the profit attributable to ordinary equity holders is adjusted.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It adjusts the denominator, by increasing or decreasing the number of ordinary shares outstanding.","es":""},"correct":false,"feedback":{"fr":"","en":"Preference shares are not ordinary shares: the settlement difference is handled in the adjustment of the profit attributable to ordinary equity holders, hence in the numerator (IAS 33). Rule to remember: The effects of preference shares on basic earnings pass through the numerator (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"It enters diluted earnings, with the adjustments for convertible instruments, but not basic earnings.","es":""},"correct":false,"feedback":{"fr":"","en":"The profit attributable to ordinary equity holders, the numerator of basic earnings per share, is itself adjusted for settlement differences on preference shares (IAS 33). Rule to remember: The adjustment applies from basic earnings per share onwards (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000021","standard_id":"IAS33","concept_ids":["IAS33.BASIC.PARTICIPATING"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000021","tested_point":"QST.IAS33.000021","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000002","section_id":"rule-participating"},"references":["IAS 33 §6","IAS 33 §A14"],"exercise":{"prompt":{"fr":"","en":"Normand SA has ordinary shares and a class of participating preference shares, which receive a fixed dividend and then share the remaining profit with the ordinary shares. For basic earnings per share, the entity allocates the year's profit to the ordinary shares after the fixed dividend alone. Which analysis applies?","es":""},"explanation":{"fr":"","en":"Ordinary shares participate in profit after the other classes of shares, such as preference shares (IAS 33, para. 6). For participating instruments, earnings per share reflects the preference dividends on the notional basis of a distribution of the period's profit to each class of equity instruments (IAS 33, para. A14). Trap: allocating the profit to the ordinary shares after the fixed dividend alone. Rule to remember: A participating instrument requires a notional allocation of profit between classes (IAS 33, para. A14).","es":""},"common_error":{"fr":"","en":"Allocating all the profit to the ordinary shares despite the existence of participating instruments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Earnings per share reflects the preference dividends on the notional basis of a distribution of profit to each class of instruments.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The allocation used is correct: the preference shares are left out of the calculation and the remaining profit goes to the ordinary shares for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Ordinary shares participate in profit after the other classes, such as preference shares, and earnings per share takes account of a notional distribution to each class, participating ones included (IAS 33, paras. 6 and A14). Rule to remember: A participating class enters the notional allocation of profit (IAS 33, para. A14).","es":""}},{"id":"C","text":{"fr":"","en":"The share of the participating shares is determined pro rata to the number of shares, independently of the preference dividends.","es":""},"correct":false,"feedback":{"fr":"","en":"The basis described is the notional distribution of the period's profit to each class of instruments, which takes the preference dividends into account (IAS 33, para. A14). Rule to remember: Preference dividends enter the notional allocation of profit (IAS 33, para. A14).","es":""}},{"id":"D","text":{"fr":"","en":"The entity chooses between allocation to the ordinary shares and notional allocation, the standard not setting a basis.","es":""},"correct":false,"feedback":{"fr":"","en":"The text describes a precise basis, the notional distribution of the period's profit to each class of equity instruments (IAS 33, para. A14). Rule to remember: Notional allocation is not left to the entity's choice for participating instruments (IAS 33, para. A14).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000022","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000022","tested_point":"QST.IAS33.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §21"],"exercise":{"prompt":{"fr":"","en":"Ordinary shares issued for cash are generally included in the weighted average number from the date on which the consideration is receivable, which is generally the date of issue.","es":""},"explanation":{"fr":"","en":"Shares issued are generally included in the weighted average number from the date the consideration is receivable, which is generally the date of issue; for an issue for cash, it is the date the cash is receivable (IAS 33, para. 21). Trap: using the date of the shareholders' decision or the reporting date. Rule to remember: The date a share enters the calculation is the date the consideration is receivable (IAS 33, para. 21).","es":""},"common_error":{"fr":"","en":"Bringing shares issued into the calculation at the reporting date rather than at the date of the consideration.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000023","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000023","tested_point":"QST.IAS33.000023","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §20","IAS 33 §21"],"exercise":{"prompt":{"fr":"","en":"At 1 January, Solène SA has {opening_shares} ordinary shares outstanding. On 1 March it issues {issued_shares} shares for cash received on that date: they are outstanding for {issue_months} months. On 1 November it buys back {repurchased_shares} of its shares, which leave circulation for the last {repurchase_months} months of the year ended 31 December (weighting in months, an approximation of the day-based time factor adopted for the case). Calculate the weighted average number of ordinary shares for the year.","es":""},"explanation":{"fr":"","en":"Approach: 3,000,000 + 600,000 x 10 / 12 − 300,000 x 2 / 12 = 3,000,000 + 500,000 − 50,000 = 3,450,000. The opening number of shares is adjusted for shares issued or bought back, weighted by a time factor (IAS 33, para. 20), shares issued counting from the date the consideration is receivable (IAS 33, para. 21). Trap: adding issues and subtracting buy-backs in full (3,300,000). Rule to remember: Issues and buy-backs enter the weighted average number in proportion to time (IAS 33, para. 20).","es":""},"common_error":{"fr":"","en":"Counting a mid-year issue or buy-back in full.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"3000000","unit":"UNITS"},{"id":"issued_shares","value":"600000","unit":"UNITS"},{"id":"issue_months","value":"10","unit":"MONTHS"},{"id":"repurchased_shares","value":"300000","unit":"UNITS"},{"id":"repurchase_months","value":"2","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"Shares issued on 1 March","es":""},"value":"600000","unit":"UNITS"},{"label":{"fr":"","en":"Months outstanding of the shares issued","es":""},"value":"10","unit":"MONTHS"},{"label":{"fr":"","en":"Shares bought back on 1 November","es":""},"value":"300000","unit":"UNITS"},{"label":{"fr":"","en":"Months elapsed since the buy-back","es":""},"value":"2","unit":"MONTHS"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":3450000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a + b * c / 12 - d * e / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on 1 March","es":""},"value":600000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months outstanding of the shares issued","es":""},"value":10,"unit":"MONTHS"},{"symbol":"d","meaning":{"fr":"","en":"Shares bought back on 1 November","es":""},"value":300000,"unit":"UNITS"},{"symbol":"e","meaning":{"fr":"","en":"Months elapsed since the buy-back","es":""},"value":2,"unit":"MONTHS"}],"result":3450000,"unit":"UNITS"}],"rationale":{"fr":"","en":"Issues and buy-backs enter the weighted average number in proportion to time (IAS 33, para. 20).","es":""},"references":["REF.IAS33.20","REF.IAS33.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000024","standard_id":"IAS33","concept_ids":["IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000024","tested_point":"QST.IAS33.000024","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §19","IAS 33 §20","IAS 33 §21"],"exercise":{"prompt":{"fr":"","en":"At 1 January, Tarnos SA has {opening_shares} ordinary shares outstanding. On 1 February it issues {conversion_shares} shares on the conversion of a debt: these shares are outstanding {conversion_months} months. On 1 July it issues {dividend_shares} shares in place of a reinvested dividend: {dividend_months} months. On 1 December it buys back {buyback_shares} shares, withdrawn for {buyback_months} month. The dates used are those of each issue, according to its terms (case convention), with weighting in months. The profit attributable to ordinary equity holders is {earnings_ordinary} (in euros). Calculate the weighted average number of shares and then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 5,000,000 + 480,000 x 11 / 12 + 360,000 x 6 / 12 − 600,000 x 1 / 12 = 5,570,000; 8,355,000 / 5,570,000 = 1.50. Each issue enters the calculation on the date set by its terms (debt conversion, reinvested dividend, cash) (IAS 33, para. 21), weighted by a time factor, and buy-backs leave it on their date (IAS 33, para. 20). Trap: treating these shares as issued on 1 January. Rule to remember: Each movement in shares enters the weighted average number on its own date, in proportion to time (IAS 33, paras. 20 and 21).","es":""},"common_error":{"fr":"","en":"Bringing in shares issued on conversion or in place of a dividend from the start of the year.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"5000000","unit":"UNITS"},{"id":"conversion_shares","value":"480000","unit":"UNITS"},{"id":"conversion_months","value":"11","unit":"MONTHS"},{"id":"dividend_shares","value":"360000","unit":"UNITS"},{"id":"dividend_months","value":"6","unit":"MONTHS"},{"id":"buyback_shares","value":"600000","unit":"UNITS"},{"id":"buyback_months","value":"1","unit":"MONTHS"},{"id":"earnings_ordinary","value":"8355000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":"5000000","unit":"UNITS"},{"label":{"fr":"","en":"Shares issued on conversion of the debt","es":""},"value":"480000","unit":"UNITS"},{"label":{"fr":"","en":"Months outstanding (conversion)","es":""},"value":"11","unit":"MONTHS"},{"label":{"fr":"","en":"Shares issued in place of a dividend","es":""},"value":"360000","unit":"UNITS"},{"label":{"fr":"","en":"Months outstanding (reinvested dividend)","es":""},"value":"6","unit":"MONTHS"},{"label":{"fr":"","en":"Shares bought back","es":""},"value":"600000","unit":"UNITS"},{"label":{"fr":"","en":"Months elapsed since the buy-back","es":""},"value":"1","unit":"MONTHS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"8355000","unit":"EUR"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":5570000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a + b * c / 12 + d * e / 12 - f * g / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":5000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on conversion of the debt","es":""},"value":480000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months outstanding (conversion)","es":""},"value":11,"unit":"MONTHS"},{"symbol":"d","meaning":{"fr":"","en":"Shares issued in place of a dividend","es":""},"value":360000,"unit":"UNITS"},{"symbol":"e","meaning":{"fr":"","en":"Months outstanding (reinvested dividend)","es":""},"value":6,"unit":"MONTHS"},{"symbol":"f","meaning":{"fr":"","en":"Shares bought back","es":""},"value":600000,"unit":"UNITS"},{"symbol":"g","meaning":{"fr":"","en":"Months elapsed since the buy-back","es":""},"value":1,"unit":"MONTHS"}],"result":5570000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":8355000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":5570000,"unit":"UNITS"}],"result":1.5,"unit":"EUR"}],"rationale":{"fr":"","en":"Each movement in shares enters the weighted average number on its own date, in proportion to time (IAS 33, paras. 20 and 21).","es":""},"references":["REF.IAS33.20","REF.IAS33.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000025","standard_id":"IAS33","concept_ids":["IAS33.SHARES.MANDATORY_CONVERTIBLE"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000025","tested_point":"QST.IAS33.000025","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-mandatory"},"references":["IAS 33 §23"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Boréal SA describes in a note the treatment of an instrument mandatorily convertible into ordinary shares. Which sentence of this note is incorrect?","es":""},"explanation":{"fr":"","en":"The shares to be issued on conversion of a mandatorily convertible instrument are included in the calculation of basic earnings per share from the date the contract is entered into (IAS 33, para. 23); being part of the basic weighted average number, they are also in the denominator of diluted earnings (IAS 33). The sentence that starts the calculation at actual conversion is therefore incorrect. Trap: treating the instrument as potential until conversion. Rule to remember: A mandatorily convertible instrument counts as shares from the contract date (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating a mandatorily convertible instrument as potential only until conversion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The shares to be issued on conversion are treated as outstanding shares in the calculation of basic earnings per share.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the shares of a mandatorily convertible instrument are treated as outstanding for basic earnings (IAS 33). Rule to remember: A mandatorily convertible instrument counts in basic earnings (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The starting point of this treatment is the date the contract is entered into.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the treatment starts from the date the contract is entered into (IAS 33). Rule to remember: The starting date is that of the contract, not that of conversion (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The shares to be issued on conversion enter basic earnings per share from the date of actual conversion.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The same treatment applies to diluted earnings per share.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: as these shares are part of the weighted average number used for basic earnings, they are also in the denominator of diluted earnings, which starts from that number (IAS 33). Rule to remember: The treatment applies to basic as well as diluted earnings (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000026","standard_id":"IAS33","concept_ids":["IAS33.SHARES.MANDATORY_CONVERTIBLE","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000026","tested_point":"QST.IAS33.000026","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §23","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"On 1 October, Brenne SA enters into a contract for a mandatorily convertible instrument: it will be converted on 30 June of the following year into 400,000 ordinary shares. The year ends on 31 December (weighting in months for the case). How many shares under the contract enter the weighted average number for basic earnings per share for the year?","es":""},"explanation":{"fr":"","en":"The shares of a mandatorily convertible instrument are treated as outstanding from the date the contract is entered into (IAS 33), then weighted by a time factor (IAS 33, para. 20): 400,000 x 3 / 12 = 100,000. Trap: waiting for conversion or counting the shares for the whole year. Rule to remember: The shares count from the contract, weighted by time (IAS 33).","es":""},"common_error":{"fr":"","en":"Waiting for the conversion date to count the shares in basic earnings.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"400,000: the shares are counted in full from the start of the year, without weighting.","es":""},"correct":false,"feedback":{"fr":"","en":"The shares count from the date the contract is entered into, not from the start of the year (IAS 33); their number is then weighted by time (IAS 33, para. 20). Rule to remember: The weighted average number reflects the time elapsed since the contract (IAS 33, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"100,000: the shares are counted from the date the contract is entered into, 1 October, that is 3 months out of 12.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"0: the shares are counted from their issue on conversion, on 30 June of the following year, the date on which the instrument would be converted.","es":""},"correct":false,"feedback":{"fr":"","en":"A mandatorily convertible instrument is treated as outstanding shares from the date the contract is entered into, without waiting for conversion (IAS 33). Rule to remember: The starting date is that of the contract (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"200,000: the shares are counted from 1 July, in the middle of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The starting point is the date the contract is entered into, here 1 October, not the middle of the year (IAS 33). Rule to remember: Weighting starts from the contract date: 3 months out of 12 (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000027","standard_id":"IAS33","concept_ids":["IAS33.SHARES.PARTLY_PAID"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000027","tested_point":"QST.IAS33.000027","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-partly-paid"},"references":["IAS 33 §A15"],"exercise":{"prompt":{"fr":"","en":"Sorel SA has partly paid ordinary shares, outstanding throughout the year, which entitle their holders to 60% of the dividend of a fully paid ordinary share. How are they treated in the weighted average number of shares for basic earnings per share?","es":""},"explanation":{"fr":"","en":"Partly paid ordinary shares in issue are treated in proportion to their dividend entitlement (IAS 33, para. A15). With an entitlement of 60% of that of a fully paid share, each share counts as 0.6 in the weighted average number. Trap: counting them as a whole share. Rule to remember: A partly paid share counts in proportion to its dividend entitlement (IAS 33).","es":""},"common_error":{"fr":"","en":"Counting a partly paid share as a whole share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As one whole share each, the partial payment having no effect on their number, even if payment is not complete.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment of partly paid shares is proportional to their dividend entitlement: a share entitled to only a fraction of the dividend does not count as a whole share (IAS 33). Rule to remember: The dividend entitlement determines the fraction of a share counted (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"As zero shares until fully paid, at which date they enter the calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Partly paid shares take part in the calculation in proportion to their dividend entitlement, without waiting for full payment (IAS 33). Rule to remember: They count now, for the fraction corresponding to their dividend entitlement (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"As potential ordinary shares, included in diluted but not in basic earnings.","es":""},"correct":false,"feedback":{"fr":"","en":"Partly paid shares already issued are dealt with in the number of shares for basic earnings, in proportion to their dividend entitlement (IAS 33). Rule to remember: Their fraction is already in the basic denominator (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"In proportion to their dividend entitlement: each counts as 0.6 of a fully paid ordinary share.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000028","standard_id":"IAS33","concept_ids":["IAS33.SHARES.CONTINGENT_BASIC"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000028","tested_point":"QST.IAS33.000028","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-contingent"},"references":["IAS 33 §24"],"exercise":{"prompt":{"fr":"","en":"An acquisition agreement provides that Rivoli SA delivers 100,000 ordinary shares to the seller of a subsidiary when all the performance conditions are met. They are met on 1 September; the shares are physically issued on 1 February of the following year. The year ends on 31 December. From which date do these shares enter basic earnings per share?","es":""},"explanation":{"fr":"","en":"Contingently issuable ordinary shares are treated as outstanding and included in basic earnings per share from the date on which all the necessary conditions are satisfied (IAS 33, para. 24). Here that is 1 September: the shares are weighted from September to December. Trap: waiting for the physical issue of the shares. Rule to remember: Contingent shares count as soon as all the conditions are satisfied (IAS 33, para. 24).","es":""},"common_error":{"fr":"","en":"Waiting for the physical issue of the shares to include them in basic earnings.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From 1 September, the date on which all the necessary conditions are satisfied.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"From 1 February of the following year, the date of actual issue of the shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The actual issue date is not the starting point: the shares are treated as outstanding as soon as all the necessary conditions are satisfied (IAS 33, para. 24). Rule to remember: The criterion is the satisfaction of the conditions, not the physical issue (IAS 33, para. 24).","es":""}},{"id":"C","text":{"fr":"","en":"From 1 January, the start of the year, as if the conditions had been met from the outset.","es":""},"correct":false,"feedback":{"fr":"","en":"Contingently issuable shares do not enter the calculation before the conditions are satisfied (IAS 33, para. 24). Rule to remember: The inclusion date is that on which all the conditions are satisfied (IAS 33, para. 24).","es":""}},{"id":"D","text":{"fr":"","en":"From 31 December, the reporting date at which the entity assesses the status of the conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"The shares enter the calculation on the date all the conditions are satisfied, here 1 September, not on the reporting date (IAS 33, para. 24). Rule to remember: The reporting date is not the date from which inclusion takes effect (IAS 33, para. 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000029","standard_id":"IAS33","concept_ids":["IAS33.SHARES.CONTINGENT_BASIC","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000029","tested_point":"QST.IAS33.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §24","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"Hauteville SA has {opening_shares} ordinary shares outstanding throughout the year. An agreement requires it to issue {contingent_shares} additional shares for little or no consideration if a revenue target is met; the target and the other conditions are met on 1 October, {months_since_conditions} months before the reporting date of 31 December (weighting in months). Calculate the weighted contingent shares included in basic earnings, then the weighted average number of ordinary shares.","es":""},"explanation":{"fr":"","en":"Approach: 120,000 x 3 / 12 = 30,000; 2,000,000 + 30,000 = 2,030,000. Contingently issuable shares are included in basic earnings from the date on which all the necessary conditions are satisfied (IAS 33, para. 24), weighted by the time elapsed since that date (IAS 33, para. 20). Trap: including them in full or from the start of the year. Rule to remember: Contingent shares count from the satisfaction of the conditions, in proportion to time (IAS 33, para. 24).","es":""},"common_error":{"fr":"","en":"Including the contingent shares in full in the weighted average number.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"2000000","unit":"UNITS"},{"id":"contingent_shares","value":"120000","unit":"UNITS"},{"id":"months_since_conditions","value":"3","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Ordinary shares outstanding throughout the year","es":""},"value":"2000000","unit":"UNITS"},{"label":{"fr":"","en":"Contingently issuable shares","es":""},"value":"120000","unit":"UNITS"},{"label":{"fr":"","en":"Months elapsed since the conditions were met","es":""},"value":"3","unit":"MONTHS"}],"steps":[{"id":"WEIGHTED_CONTINGENT","label":{"fr":"","en":"Weighted contingent shares","es":""},"answer":30000,"tolerance":0,"unit":"UNITS"},{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":2030000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"WEIGHTED_CONTINGENT","meaning":{"fr":"","en":"Weighted contingent shares","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Contingently issuable shares","es":""},"value":120000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Months elapsed since the conditions were met","es":""},"value":3,"unit":"MONTHS"}],"result":30000,"unit":"UNITS"},{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares outstanding throughout the year","es":""},"value":2000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Weighted contingent shares","es":""},"value":30000,"unit":"UNITS"}],"result":2030000,"unit":"UNITS"}],"rationale":{"fr":"","en":"Contingent shares count from the satisfaction of the conditions, in proportion to time (IAS 33, para. 24).","es":""},"references":["REF.IAS33.24","REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000030","standard_id":"IAS33","concept_ids":["IAS33.SHARES.CONTINGENT_BASIC","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000030","tested_point":"QST.IAS33.000030","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §24","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"Under a takeover contract, Valmy SA must issue two tranches of ordinary shares for little or no consideration, under separate conditions. The first tranche, of {tranche1_shares} shares, vests on 1 March: all its conditions have been met for {tranche1_months} months at 31 December. The second, of {tranche2_shares} shares, depends on a condition that is not met at the reporting date. Valmy has {opening_shares} ordinary shares outstanding throughout the year and a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros). Calculate the weighted average number of shares for basic earnings and then earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 3,000,000 + 90,000 x 10 / 12 = 3,075,000; 4,612,500 / 3,075,000 = 1.50. The first tranche enters basic earnings from the date all its conditions are satisfied (IAS 33, para. 24), weighted by time (IAS 33, para. 20); the second, whose conditions are not satisfied, stays excluded. Trap: also including the 60,000 shares of the second tranche. Rule to remember: Shares enter basic earnings once all their conditions are satisfied (IAS 33, para. 24).","es":""},"common_error":{"fr":"","en":"Including in basic earnings shares whose conditions are not satisfied.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"3000000","unit":"UNITS"},{"id":"tranche1_shares","value":"90000","unit":"UNITS"},{"id":"tranche1_months","value":"10","unit":"MONTHS"},{"id":"tranche2_shares","value":"60000","unit":"UNITS"},{"id":"earnings_ordinary","value":"4612500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Ordinary shares outstanding throughout the year","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"First tranche of contingent shares","es":""},"value":"90000","unit":"UNITS"},{"label":{"fr":"","en":"Months since the conditions of the first tranche were met","es":""},"value":"10","unit":"MONTHS"},{"label":{"fr":"","en":"Second tranche (condition not met)","es":""},"value":"60000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"4612500","unit":"EUR"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":3075000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a + b * c / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares outstanding throughout the year","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"First tranche of contingent shares","es":""},"value":90000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months since the conditions of the first tranche were met","es":""},"value":10,"unit":"MONTHS"}],"result":3075000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":4612500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3075000,"unit":"UNITS"}],"result":1.5,"unit":"EUR"}],"rationale":{"fr":"","en":"Shares enter basic earnings once all their conditions are satisfied (IAS 33, para. 24).","es":""},"references":["REF.IAS33.24","REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000031","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000002","tested_point":"VG.IAS33.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-bonus"},"references":["IAS 33 §27","IAS 33 §28"],"exercise":{"prompt":{"fr":"","en":"Castel SA has {shares_before_event} ordinary shares outstanding throughout the year until a bonus issue by capitalisation of reserves on 1 September of one new share for four held: no new resources enter the entity. The profit attributable to ordinary equity holders for the year is {earnings_ordinary} (in euros). Calculate the number of shares restated for the bonus issue for the year's calculation, then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 4,000,000 x 5 / 4 = 5,000,000; 3,750,000 / 5,000,000 = 0.75. In a bonus issue, shares are issued to existing shareholders for no additional consideration: the number of shares outstanding before the event is adjusted as if the event had occurred at the beginning of the earliest period presented (IAS 33, para. 28), with no time weighting. Trap: weighting the 1,000,000 new shares by 4 months out of 12 (giving 4,333,333 shares). Rule to remember: A bonus issue is restated as if it had occurred at the beginning of the earliest period presented (IAS 33, para. 28).","es":""},"common_error":{"fr":"","en":"Time-weighting the shares of a bonus issue.","es":""},"format":"CALCULATION","placeholders":[{"id":"shares_before_event","value":"4000000","unit":"UNITS"},{"id":"earnings_ordinary","value":"3750000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Shares outstanding before the bonus issue","es":""},"value":"4000000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3750000","unit":"EUR"}],"steps":[{"id":"RESTATED_SHARES","label":{"fr":"","en":"Restated number of shares","es":""},"answer":5000000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":0.75,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RESTATED_SHARES","meaning":{"fr":"","en":"Restated number of shares","es":""},"expression":"a * 5 / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares outstanding before the bonus issue","es":""},"value":4000000,"unit":"UNITS"}],"result":5000000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":3750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of shares","es":""},"value":5000000,"unit":"UNITS"}],"result":0.75,"unit":"EUR"}],"rationale":{"fr":"","en":"A bonus issue is restated as if it had occurred at the beginning of the earliest period presented (IAS 33, para. 28).","es":""},"references":["REF.IAS33.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000032","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT","IAS33.SHARES.WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000002","tested_point":"VG.IAS33.000002","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000005","section_id":"rule-weighted"},"references":["IAS 33 §27","IAS 33 §28","IAS 33 §20"],"exercise":{"prompt":{"fr":"","en":"Bréval SA has {opening_shares} ordinary shares at 1 January. On 1 April it issues {cash_issue_shares} shares for cash, outstanding {cash_issue_months} months until 31 December. On 1 October it makes a bonus issue of one new share for two held, with no new resources. The profit attributable to ordinary equity holders for the year is {earnings_ordinary} (in euros). Calculate the weighted average number of shares for the year, restated for the bonus issue (weighting in months), then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: (2,400,000 + 600,000 x 9 / 12) x 3 / 2 = 2,850,000 x 3 / 2 = 4,275,000; 5,985,000 / 4,275,000 = 1.40. The cash issue is weighted by time (IAS 33, para. 20); the bonus issue, with no corresponding change in resources, adjusts the number of shares before the event as if it had occurred at the beginning of the period, with no weighting of its own (IAS 33, para. 28). Trap: weighting the bonus issue by 3 months out of 12. Rule to remember: The bonus issue multiplies the number of shares before the event, with no time weighting (IAS 33, para. 28).","es":""},"common_error":{"fr":"","en":"Time-weighting a bonus issue as well as adjusting for it.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_shares","value":"2400000","unit":"UNITS"},{"id":"cash_issue_shares","value":"600000","unit":"UNITS"},{"id":"cash_issue_months","value":"9","unit":"MONTHS"},{"id":"earnings_ordinary","value":"5985000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":"2400000","unit":"UNITS"},{"label":{"fr":"","en":"Shares issued for cash on 1 April","es":""},"value":"600000","unit":"UNITS"},{"label":{"fr":"","en":"Months outstanding of the shares issued for cash","es":""},"value":"9","unit":"MONTHS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"5985000","unit":"EUR"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Restated weighted average number","es":""},"answer":4275000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.4,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Restated weighted average number","es":""},"expression":"(a + b * c / 12) * 3 / 2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ordinary shares at 1 January","es":""},"value":2400000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued for cash on 1 April","es":""},"value":600000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months outstanding of the shares issued for cash","es":""},"value":9,"unit":"MONTHS"}],"result":4275000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":5985000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated weighted average number","es":""},"value":4275000,"unit":"UNITS"}],"result":1.4,"unit":"EUR"}],"rationale":{"fr":"","en":"The bonus issue multiplies the number of shares before the event, with no time weighting (IAS 33, para. 28).","es":""},"references":["REF.IAS33.28","REF.IAS33.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000033","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.BONUS_SPLIT"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000033","tested_point":"QST.IAS33.000033","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-bonus"},"references":["IAS 33 §26","IAS 33 §28"],"exercise":{"prompt":{"fr":"","en":"In a recap note on the bonus issue of shares made by Orléans SA on 1 October, which sentence is incorrect?","es":""},"explanation":{"fr":"","en":"A bonus issue increases the number of shares without a corresponding change in resources: the number of shares before the event is adjusted as if the event had occurred at the beginning of the earliest period presented (IAS 33, para. 28), and all periods presented are adjusted (IAS 33, para. 26). The sentence weighting the issue by 3 months out of 12 is therefore incorrect. Trap: treating the bonus issue like an issue for cash. Rule to remember: A bonus issue is not weighted by time (IAS 33, para. 28).","es":""},"common_error":{"fr":"","en":"Time-weighting a bonus issue or a share split.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The number of shares outstanding before the issue is adjusted as if the event had occurred at the beginning of the earliest period presented.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: this is the adjustment provided for a bonus issue (IAS 33, para. 28). Rule to remember: A bonus issue is restated as if it had occurred at the beginning of the earliest period presented (IAS 33, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"The issue increases the number of shares without a corresponding increase in the entity's resources.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the shares are issued to existing shareholders for no additional consideration (IAS 33, para. 28). Rule to remember: It is the absence of new resources that justifies a restatement without weighting (IAS 33, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"The shares of the bonus issue are weighted by 3 months out of 12 in the weighted average number for the year.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The weighted average number for the period and for the periods presented is adjusted for the event.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the weighted average number for the period and for all periods presented is adjusted for events that change the number of shares without a corresponding change in resources (IAS 33, para. 26). Rule to remember: All the periods presented are restated (IAS 33, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000034","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.REVERSE_SPLIT","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000003","tested_point":"VG.IAS33.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §27","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"Pasteur SA has {shares_before_event} ordinary shares outstanding throughout the year, until a reverse share split on 1 November: one new share for five old shares. The profit attributable to ordinary equity holders for the year is {earnings_ordinary} (in euros). Calculate the number of shares for the year's calculation, restated for the consolidation, then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 10,000,000 / 5 = 2,000,000; 3,400,000 / 2,000,000 = 1.70. A reverse share split is one of the events that change the number of shares without a corresponding change in resources (IAS 33); when the number of shares decreases through a reverse split, earnings per share for all periods presented is recalculated retrospectively (IAS 33, para. 64). Trap: keeping 10,000,000 shares for the period before the consolidation. Rule to remember: A reverse share split is restated for all periods presented (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Not restating prior periods on a reverse share split.","es":""},"format":"CALCULATION","placeholders":[{"id":"shares_before_event","value":"10000000","unit":"UNITS"},{"id":"earnings_ordinary","value":"3400000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Shares outstanding before the consolidation","es":""},"value":"10000000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3400000","unit":"EUR"}],"steps":[{"id":"RESTATED_SHARES","label":{"fr":"","en":"Restated number of shares","es":""},"answer":2000000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":1.7,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RESTATED_SHARES","meaning":{"fr":"","en":"Restated number of shares","es":""},"expression":"a / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares outstanding before the consolidation","es":""},"value":10000000,"unit":"UNITS"}],"result":2000000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":3400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of shares","es":""},"value":2000000,"unit":"UNITS"}],"result":1.7,"unit":"EUR"}],"rationale":{"fr":"","en":"A reverse share split is restated for all periods presented (IAS 33, para. 64).","es":""},"references":["REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000035","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.REVERSE_SPLIT","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000003","tested_point":"VG.IAS33.000003","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §27","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"In its financial statements for year N, Lumière SA presents year N-1 as a comparative, for which it had published basic earnings per share of 0.15: profit attributable to ordinary equity holders of {prior_earnings} (in euros) and {prior_shares} shares outstanding throughout the year. During year N the entity carried out a reverse share split of one new share for four old ones. For the N-1 comparative, calculate the restated number of shares and then the restated basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 12,000,000 / 4 = 3,000,000; 1,800,000 / 3,000,000 = 0.60 instead of 0.15. When the number of shares decreases through a reverse split, earnings per share for all periods presented is recalculated retrospectively (IAS 33, para. 64), the consolidation being one of the events with no corresponding change in resources (IAS 33). Trap: leaving the comparative at 0.15. Rule to remember: The comparative is recalculated on the number of shares resulting from the consolidation (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Leaving comparative earnings per share at its published value after a reverse split.","es":""},"format":"CALCULATION","placeholders":[{"id":"prior_shares","value":"12000000","unit":"UNITS"},{"id":"prior_earnings","value":"1800000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"N-1 shares before the consolidation","es":""},"value":"12000000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders of N-1","es":""},"value":"1800000","unit":"EUR"}],"steps":[{"id":"RESTATED_PRIOR_SHARES","label":{"fr":"","en":"Restated number of N-1 shares","es":""},"answer":3000000,"tolerance":0,"unit":"UNITS"},{"id":"RESTATED_PRIOR_EPS","label":{"fr":"","en":"Restated N-1 basic earnings per share","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RESTATED_PRIOR_SHARES","meaning":{"fr":"","en":"Restated number of N-1 shares","es":""},"expression":"a / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"N-1 shares before the consolidation","es":""},"value":12000000,"unit":"UNITS"}],"result":3000000,"unit":"UNITS"},{"step":"RESTATED_PRIOR_EPS","meaning":{"fr":"","en":"Restated N-1 basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders of N-1","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of N-1 shares","es":""},"value":3000000,"unit":"UNITS"}],"result":0.6,"unit":"EUR"}],"rationale":{"fr":"","en":"The comparative is recalculated on the number of shares resulting from the consolidation (IAS 33, para. 64).","es":""},"references":["REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000036","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.REVERSE_SPLIT","IAS33.ADJUST.BONUS_SPLIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000036","tested_point":"QST.IAS33.000036","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-bonus"},"references":["IAS 33 §26","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Which of the following transactions on the share capital of Montaigne SA are among the events for which the weighted average number of shares for the period and the periods presented is adjusted because they change the number of shares without a corresponding change in resources? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The weighted average number of shares for the period and for all periods presented is adjusted for events, other than the conversion of potential ordinary shares, that changed the number of shares without a corresponding change in resources (IAS 33, para. 26). The events concerned are a capitalisation or bonus issue (IAS 33, para. 27), a share split and a reverse split (IAS 33); an issue at market price increases resources and the conversion of potential shares is excluded. Trap: adjusting prior periods for any change in the number of shares. Rule to remember: Retrospective adjustment targets events with no corresponding change in resources (IAS 33, para. 26).","es":""},"common_error":{"fr":"","en":"Restating prior periods for an issue at market price.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A capitalisation of reserves, through a bonus issue of shares to existing shareholders.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An issue of shares for cash at market price, which increases resources in proportion.","es":""},"correct":false,"feedback":{"fr":"","en":"In an issue at market price, resources increase in proportion to the number of shares: it is not among the events with no corresponding change in resources (IAS 33, para. 26). Rule to remember: Adjustment applies to events that change the number of shares without a corresponding change in resources (IAS 33, para. 26).","es":""}},{"id":"C","text":{"fr":"","en":"The conversion of a convertible bond into ordinary shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard excludes the conversion of potential ordinary shares from these events: it does not trigger the retrospective adjustment provided (IAS 33, para. 26). Rule to remember: The adjustment applies to events other than the conversion of potential ordinary shares (IAS 33, para. 26).","es":""}},{"id":"D","text":{"fr":"","en":"A reverse share split, for example one new share for ten old shares.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A share split, for example two new shares for one old share.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000037","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000037","tested_point":"QST.IAS33.000037","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-rights"},"references":["IAS 33 §A2","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Sevran SA, which had 1,200,000 shares, makes a rights issue: one new share for two held, at 6.00. The fair value of all the shares before the exercise of the rights is {value_before} (in euros), that is a price of {price_before_rights} per share before the rights are detached; the proceeds of the issue are {proceeds} and there are {shares_after} shares after the issue. Calculate the theoretical ex-rights value of one share, then the retrospective adjustment factor.","es":""},"explanation":{"fr":"","en":"Approach: (14,400,000 + 3,600,000) / 1,800,000 = 10.00; factor 12.00 / 10.00 = 1.20. A rights issue with a bonus element is first treated as an issue for consideration; the factor is the price before the rights are detached divided by the theoretical ex-rights value, which is the value of all shares before the issue plus the proceeds, divided by the number of shares after the issue (IAS 33, paras. 26, 27(b) and A2). The fair value before the exercise is a case datum. Trap: using the issue price of 6.00 as the theoretical value. Rule to remember: The adjustment factor is the price before detachment divided by the theoretical value (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Treating a rights issue below market price as an issue at market price, with no adjustment factor.","es":""},"format":"CALCULATION","placeholders":[{"id":"value_before","value":"14400000","unit":"EUR"},{"id":"proceeds","value":"3600000","unit":"EUR"},{"id":"shares_after","value":"1800000","unit":"UNITS"},{"id":"price_before_rights","value":"12","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of all shares before the exercise","es":""},"value":"14400000","unit":"EUR"},{"label":{"fr":"","en":"Proceeds of the rights issue","es":""},"value":"3600000","unit":"EUR"},{"label":{"fr":"","en":"Shares after the issue","es":""},"value":"1800000","unit":"UNITS"},{"label":{"fr":"","en":"Price before the rights are detached","es":""},"value":"12","unit":"EUR"}],"steps":[{"id":"THEORETICAL_PRICE","label":{"fr":"","en":"Theoretical ex-rights value","es":""},"answer":10,"tolerance":0,"unit":"EUR"},{"id":"ADJUSTMENT_FACTOR","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.2,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"THEORETICAL_PRICE","meaning":{"fr":"","en":"Theoretical ex-rights value","es":""},"expression":"(a + b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of all shares before the exercise","es":""},"value":14400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Proceeds of the rights issue","es":""},"value":3600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Shares after the issue","es":""},"value":1800000,"unit":"UNITS"}],"result":10,"unit":"EUR"},{"step":"ADJUSTMENT_FACTOR","meaning":{"fr":"","en":"Adjustment factor","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price before the rights are detached","es":""},"value":12,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Theoretical ex-rights value","es":""},"value":10,"unit":"EUR"}],"result":1.2,"unit":"UNITS"}],"rationale":{"fr":"","en":"The adjustment factor is the price before detachment divided by the theoretical value (IAS 33, paras. 26, 27(b) and A2).","es":""},"references":["REF.IAS33.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000038","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000038","tested_point":"QST.IAS33.000038","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000007","section_id":"rule-rights"},"references":["IAS 33 §A2","IAS 33 §27"],"exercise":{"prompt":{"fr":"","en":"Gaillac SA has {shares_before} ordinary shares before a rights issue whose rights are exercised on 1 April: {new_shares} new shares are issued on that date. The adjustment factor for the bonus element, calculated as the price before the rights are detached divided by the theoretical ex-rights value, is {adjustment_factor}. The number of shares before the exercise is multiplied by this factor and counts {months_before_exercise} months; all the shares after the exercise count {months_after_exercise} months (weighting in months, case convention). The profit attributable to ordinary equity holders for the year is {earnings_ordinary} (in euros). Calculate the weighted average number of shares for the year and then basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 1,200,000 x 1.2 x 3 / 12 + (1,200,000 + 600,000) x 9 / 12 = 360,000 + 1,350,000 = 1,710,000; 3,420,000 / 1,710,000 = 2.00. The rights issue is first treated as an issue for consideration, then a retrospective factor reflecting the bonus element is applied (IAS 33, paras. 26, 27(b) and A2); the factor is a case datum. The number of shares before the exercise is multiplied by the factor before being weighted (IAS 33, paras. 26, 27(b) and A2). Trap: applying the factor to the shares after the exercise. Rule to remember: The bonus element of a rights issue is handled through a retrospective adjustment factor (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Forgetting to apply the adjustment factor to the shares before the exercise of the rights.","es":""},"format":"CALCULATION","placeholders":[{"id":"shares_before","value":"1200000","unit":"UNITS"},{"id":"adjustment_factor","value":"1.2","unit":"UNITS"},{"id":"new_shares","value":"600000","unit":"UNITS"},{"id":"months_before_exercise","value":"3","unit":"MONTHS"},{"id":"months_after_exercise","value":"9","unit":"MONTHS"},{"id":"earnings_ordinary","value":"3420000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Shares before the exercise of the rights","es":""},"value":"1200000","unit":"UNITS"},{"label":{"fr":"","en":"Adjustment factor for the bonus element","es":""},"value":"1.2","unit":"UNITS"},{"label":{"fr":"","en":"New shares issued on 1 April","es":""},"value":"600000","unit":"UNITS"},{"label":{"fr":"","en":"Months before the exercise of the rights","es":""},"value":"3","unit":"MONTHS"},{"label":{"fr":"","en":"Months after the exercise of the rights","es":""},"value":"9","unit":"MONTHS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3420000","unit":"EUR"}],"steps":[{"id":"WEIGHTED_SHARES","label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"answer":1710000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share","es":""},"answer":2,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_SHARES","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"expression":"a * b * c / 12 + (a + d) * e / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares before the exercise of the rights","es":""},"value":1200000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment factor for the bonus element","es":""},"value":1.2,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Months before the exercise of the rights","es":""},"value":3,"unit":"MONTHS"},{"symbol":"d","meaning":{"fr":"","en":"New shares issued on 1 April","es":""},"value":600000,"unit":"UNITS"},{"symbol":"e","meaning":{"fr":"","en":"Months after the exercise of the rights","es":""},"value":9,"unit":"MONTHS"}],"result":1710000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":3420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":1710000,"unit":"UNITS"}],"result":2,"unit":"EUR"}],"rationale":{"fr":"","en":"The bonus element of a rights issue is handled through a retrospective adjustment factor (IAS 33, paras. 26, 27(b) and A2).","es":""},"references":["REF.IAS33.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000039","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RIGHTS","IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000039","tested_point":"QST.IAS33.000039","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §A2","IAS 33 §27","IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"During year N, Aurillac SA carried out a rights issue with a bonus element. The price before the rights are detached is {price_before_rights} and the theoretical ex-rights value is {theoretical_price}. For year N-1, presented as a comparative, the entity had published basic earnings per share of 1.88, with a profit attributable to ordinary equity holders of {prior_earnings} (in euros) and {prior_shares} shares. Calculate the adjustment factor, the restated number of N-1 shares and the restated comparative basic earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: factor 15 / 12 = 1.25; shares 1,200,000 x 1.25 = 1,500,000; 2,250,000 / 1,500,000 = 1.50. The adjustment factor is the price before the rights are detached divided by the theoretical ex-rights value, applied retrospectively to prior periods (IAS 33, paras. 26, 27(b) and A2); earnings per share for all periods presented is recalculated (IAS 33, para. 64). Trap: leaving the comparative at 1.88. Rule to remember: The comparative of a rights issue is recalculated with the adjustment factor (IAS 33, paras. 26, 27(b) and A2).","es":""},"common_error":{"fr":"","en":"Leaving comparative earnings per share at its published value after a rights issue with a bonus element.","es":""},"format":"CALCULATION","placeholders":[{"id":"price_before_rights","value":"15","unit":"EUR"},{"id":"theoretical_price","value":"12","unit":"EUR"},{"id":"prior_shares","value":"1200000","unit":"UNITS"},{"id":"prior_earnings","value":"2250000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Price before the rights are detached","es":""},"value":"15","unit":"EUR"},{"label":{"fr":"","en":"Theoretical ex-rights value","es":""},"value":"12","unit":"EUR"},{"label":{"fr":"","en":"N-1 shares as published","es":""},"value":"1200000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders of N-1","es":""},"value":"2250000","unit":"EUR"}],"steps":[{"id":"ADJUSTMENT_FACTOR","label":{"fr":"","en":"Adjustment factor","es":""},"answer":1.25,"tolerance":0,"unit":"UNITS"},{"id":"RESTATED_PRIOR_SHARES","label":{"fr":"","en":"Restated number of N-1 shares","es":""},"answer":1500000,"tolerance":0,"unit":"UNITS"},{"id":"RESTATED_PRIOR_EPS","label":{"fr":"","en":"Restated N-1 basic earnings per share","es":""},"answer":1.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADJUSTMENT_FACTOR","meaning":{"fr":"","en":"Adjustment factor","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price before the rights are detached","es":""},"value":15,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Theoretical ex-rights value","es":""},"value":12,"unit":"EUR"}],"result":1.25,"unit":"UNITS"},{"step":"RESTATED_PRIOR_SHARES","meaning":{"fr":"","en":"Restated number of N-1 shares","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"N-1 shares as published","es":""},"value":1200000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment factor","es":""},"value":1.25,"unit":"UNITS"}],"result":1500000,"unit":"UNITS"},{"step":"RESTATED_PRIOR_EPS","meaning":{"fr":"","en":"Restated N-1 basic earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders of N-1","es":""},"value":2250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of N-1 shares","es":""},"value":1500000,"unit":"UNITS"}],"result":1.5,"unit":"EUR"}],"rationale":{"fr":"","en":"The comparative of a rights issue is recalculated with the adjustment factor (IAS 33, paras. 26, 27(b) and A2).","es":""},"references":["REF.IAS33.27","REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000040","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RETROSPECTIVE"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000040","tested_point":"QST.IAS33.000040","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"On 10 February, after the reporting date of 31 December but before the financial statements are authorised for issue (15 March), Bastide SA makes a bonus issue of one share for five. The financial statements present the year just ended and the previous year. How is earnings per share treated?","es":""},"explanation":{"fr":"","en":"If the number of shares increases through a bonus issue, basic and diluted earnings per share for all periods presented is recalculated retrospectively; if the change occurs after the reporting date but before authorisation for issue, the calculations for that period and for prior periods presented rest on the new number of shares and the fact is disclosed (IAS 33, para. 64). Trap: waiting for the next year to reflect the issue. Rule to remember: A change in the number of shares after the reporting date but before authorisation is reflected in the periods presented (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Not restating an event that is after the reporting date but before authorisation for issue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Earnings per share for year N+1 will rest on the new number of shares; that of the year ended remains calculated on the number of shares at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"A change occurring after the reporting date but before authorisation for issue affects the calculations of the period ended and of the prior periods presented (IAS 33, para. 64). Rule to remember: The periods presented are recalculated on the new number of shares (IAS 33, para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"The calculations for the year ended and for the previous year presented rest on the new number of shares, and that fact is disclosed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Earnings per share is not restated, because the event occurs after the reporting date of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The text expressly provides for a change in the number of shares after the reporting date but before authorisation for issue: the calculations rest on the new number (IAS 33, para. 64). Rule to remember: A bonus issue after the reporting date does not remain without effect on the earnings per share presented (IAS 33, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"The restatement concerns the year ended, but the previous year presented stays at its published earnings per share.","es":""},"correct":false,"feedback":{"fr":"","en":"The recalculation covers the period ended and also the prior periods presented (IAS 33, para. 64). Rule to remember: All the periods presented rest on the new number of shares (IAS 33, para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000041","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000041","tested_point":"QST.IAS33.000041","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"Dolmen SA has {shares_at_closing} ordinary shares outstanding throughout year N and a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros). On 20 February N+1, after the reporting date but before the financial statements for N are authorised for issue, it splits its shares at the rate of three new shares for one old share. Calculate the number of shares and the basic earnings per share for N presented in those financial statements. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 3,000,000 x 3 = 9,000,000; 2,700,000 / 9,000,000 = 0.30, instead of 0.90 on the old number of shares. When the number of shares increases through a split after the reporting date but before authorisation for issue, the calculations for the period and prior periods presented rest on the new number of shares, and the fact is disclosed (IAS 33, para. 64). Trap: keeping the number of shares at the reporting date because the split is later. Rule to remember: A change in the number of shares after the reporting date but before authorisation is reflected in the calculations presented (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Not restating an event that is after the reporting date but before authorisation for issue.","es":""},"format":"CALCULATION","placeholders":[{"id":"shares_at_closing","value":"3000000","unit":"UNITS"},{"id":"earnings_ordinary","value":"2700000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Shares outstanding at the end of N","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"2700000","unit":"EUR"}],"steps":[{"id":"RESTATED_SHARES","label":{"fr":"","en":"Restated number of shares","es":""},"answer":9000000,"tolerance":0,"unit":"UNITS"},{"id":"BASIC_EPS","label":{"fr":"","en":"Basic earnings per share for N","es":""},"answer":0.3,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RESTATED_SHARES","meaning":{"fr":"","en":"Restated number of shares","es":""},"expression":"a * 3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares outstanding at the end of N","es":""},"value":3000000,"unit":"UNITS"}],"result":9000000,"unit":"UNITS"},{"step":"BASIC_EPS","meaning":{"fr":"","en":"Basic earnings per share for N","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":2700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restated number of shares","es":""},"value":9000000,"unit":"UNITS"}],"result":0.3,"unit":"EUR"}],"rationale":{"fr":"","en":"A change in the number of shares after the reporting date but before authorisation is reflected in the calculations presented (IAS 33, para. 64).","es":""},"references":["REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000042","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.RETROSPECTIVE"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000042","tested_point":"QST.IAS33.000042","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-retro"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"The financial statements for year N of Rochefort SA present N-1 as a comparative. For N, the profit attributable to ordinary equity holders is {earnings_year} (in euros) for {shares_year} shares outstanding throughout the year. For N-1, the published profit was {prior_earnings_published} for {prior_shares} shares; a material error in N-1, corrected retrospectively in the financial statements for N, reduces that profit by {error_adjustment}. After the end of N but before authorisation for issue, the entity consolidates its shares at the rate of one new share for ten old ones. Calculate basic earnings per share for N and for N-1 as presented. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: N 4,800,000 / (24,000,000 / 10) = 2.00; N-1 (3,900,000 − 260,000) / (26,000,000 / 10) = 3,640,000 / 2,600,000 = 1.40. The consolidation after the reporting date but before authorisation for issue makes the calculations for N and N-1 rest on the new number of shares (IAS 33, para. 64); according to the facts, the N-1 error is corrected retrospectively in the financial statements for N, so the corrected N-1 profit follows from the case data. Trap: omitting the N-1 error correction (the result would be 1.50). Rule to remember: The comparative is restated on the new number of shares (IAS 33, para. 64); the corrected N-1 profit follows from the case data.","es":""},"common_error":{"fr":"","en":"Forgetting to use the corrected N-1 profit given by the case.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_year","value":"4800000","unit":"EUR"},{"id":"shares_year","value":"24000000","unit":"UNITS"},{"id":"prior_earnings_published","value":"3900000","unit":"EUR"},{"id":"error_adjustment","value":"260000","unit":"EUR"},{"id":"prior_shares","value":"26000000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders of N","es":""},"value":"4800000","unit":"EUR"},{"label":{"fr":"","en":"N shares before the consolidation","es":""},"value":"24000000","unit":"UNITS"},{"label":{"fr":"","en":"Published N-1 profit","es":""},"value":"3900000","unit":"EUR"},{"label":{"fr":"","en":"Reduction of the N-1 profit by the error correction","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"N-1 shares before the consolidation","es":""},"value":"26000000","unit":"UNITS"}],"steps":[{"id":"BASIC_EPS_YEAR","label":{"fr":"","en":"Basic earnings per share for N","es":""},"answer":2,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS_PRIOR","label":{"fr":"","en":"Basic earnings per share for N-1","es":""},"answer":1.4,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BASIC_EPS_YEAR","meaning":{"fr":"","en":"Basic earnings per share for N","es":""},"expression":"a / (b / 10)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders of N","es":""},"value":4800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N shares before the consolidation","es":""},"value":24000000,"unit":"UNITS"}],"result":2,"unit":"EUR"}],"rationale":{"fr":"","en":"The comparative is restated on the new number of shares (IAS 33, para. 64); the corrected N-1 profit follows from the case data.","es":""},"references":["REF.IAS33.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000043","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.ERRORS_POLICIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000043","tested_point":"QST.IAS33.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-errors"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"In N+1, Kervan SA retrospectively corrects a material error of year N, which had overstated its profit. The number of shares has not changed. What becomes of the N earnings per share presented as a comparative in the N+1 financial statements?","es":""},"explanation":{"fr":"","en":"Earnings per share for all periods presented is recalculated retrospectively when the number of shares changes without a change in resources (IAS 33, para. 64); it is also adjusted for error corrections and for changes in accounting policies applied retrospectively (IAS 33). The correction reduces the profit of N: the N comparative falls even if the number of shares is unchanged. Trap: believing that a change in the number of shares is needed to recalculate a comparative. Rule to remember: An error correction applied retrospectively carries through to comparative earnings per share (IAS 33).","es":""},"common_error":{"fr":"","en":"Not carrying an error correction or a change in policy through to comparative earnings per share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is adjusted for the error correction applied retrospectively, like that of all periods presented.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It stays unchanged, because the number of shares, the denominator of the calculation, has not changed.","es":""},"correct":false,"feedback":{"fr":"","en":"Earnings per share is also adjusted for error corrections applied retrospectively, even if the number of shares does not change: the numerator moves (IAS 33, para. 64). Rule to remember: The comparative follows the error correction (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"It is corrected in a note, while earnings per share on the face of the income statement keeps the published amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The text provides for adjusting earnings per share for all periods, without confining the adjustment to a note (IAS 33, para. 64). Rule to remember: The comparative presented reflects the correction (IAS 33, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"Basic earnings per share is adjusted, while the published diluted earnings per share is maintained.","es":""},"correct":false,"feedback":{"fr":"","en":"The recalculation covers basic and diluted earnings per share: the error correction does not apply to just one of the two (IAS 33). Rule to remember: Both comparative earnings per share figures follow the correction (IAS 33, para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000044","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.ERRORS_POLICIES"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000044","tested_point":"QST.IAS33.000044","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-errors"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"An analyst summarises in a note the effect of error corrections and policy changes on the earnings per share presented by Lanvin SA. Which sentence of the note is incorrect?","es":""},"explanation":{"fr":"","en":"Earnings per share for all periods is recalculated retrospectively when the number of shares changes without a change in resources (IAS 33, para. 64); it is also adjusted for error corrections and for changes in policies applied retrospectively (IAS 33). The sentence that leaves prior periods at the published amount is therefore incorrect. Trap: limiting the effect of a correction to the current period. Rule to remember: Retrospective corrections carry through to earnings per share for all periods presented (IAS 33).","es":""},"common_error":{"fr":"","en":"Limiting the effect of an error correction to earnings per share of the current period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Earnings per share for the periods presented is adjusted for error corrections applied retrospectively, once the error has been corrected.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: it is the rule set for error corrections (IAS 33). Rule to remember: Error corrections carry through to all periods presented (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"Earnings per share is also adjusted for changes in accounting policies applied retrospectively.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: changes in policies applied retrospectively also adjust earnings per share for all periods (IAS 33). Rule to remember: Error corrections and policy changes follow the same treatment (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The adjustment applies to basic earnings per share as well as to diluted earnings per share.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the retrospective recalculation concerns basic and diluted earnings per share (IAS 33, para. 64). Rule to remember: Both earnings per share figures are concerned (IAS 33, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"The correction of a prior-period error changes earnings per share of the current period, that of prior periods remaining as published.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000045","standard_id":"IAS33","concept_ids":["IAS33.ADJUST.DILUTED_PRIOR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000045","tested_point":"QST.IAS33.000045","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-diluted-prior"},"references":["IAS 33 §65"],"exercise":{"prompt":{"fr":"","en":"The diluted earnings per share of the prior periods presented is restated when the calculation assumptions change, or when potential ordinary shares are converted into ordinary shares.","es":""},"explanation":{"fr":"","en":"Diluted earnings per share of prior periods is not adjusted for changes in assumptions, nor for the conversion of potential ordinary shares into ordinary shares (IAS 33, para. 65). Trap: updating the prior diluted figure with the current year's assumptions. Rule to remember: Prior diluted earnings per share is not restated for a change in assumptions or a conversion (IAS 33, para. 65).","es":""},"common_error":{"fr":"","en":"Restating prior periods' diluted earnings per share for a change in assumptions or a conversion.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000046","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000046","tested_point":"QST.IAS33.000046","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-principle"},"references":["IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"Diluted earnings per share is calculated by adjusting the weighted average number of shares for the effects of dilutive potential ordinary shares, the profit attributable to ordinary equity holders remaining that of basic earnings.","es":""},"explanation":{"fr":"","en":"For diluted earnings per share, the entity adjusts both the profit attributable to the ordinary equity holders of the parent and the weighted average number of shares outstanding for the effects of all dilutive potential ordinary shares (IAS 33, para. 31). The statement is therefore inaccurate: the numerator is adjusted as well. Trap: retaining the effect on the number of shares only, forgetting interest and dividends that disappear on conversion. Rule to remember: Diluted earnings adjusts the numerator and the denominator (IAS 33).","es":""},"common_error":{"fr":"","en":"Adjusting the denominator alone to obtain diluted earnings.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000047","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000047","tested_point":"QST.IAS33.000047","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-principle"},"references":["IAS 33 §31"],"exercise":{"prompt":{"fr":"","en":"Which statements correctly describe the calculation of diluted earnings per share? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"For diluted earnings per share, the entity adjusts the profit attributable to the ordinary equity holders of the parent and the weighted average number of shares outstanding for the effects of all dilutive potential ordinary shares (IAS 33, para. 31). The first two statements and the one on dilutive instruments are correct; leaving the numerator unadjusted, or including non-dilutive instruments too, is incorrect. Trap: adjusting the denominator alone. Rule to remember: Diluted earnings adjusts numerator and denominator for the effects of dilutive potential shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Believing that diluted earnings only adjusts the number of shares.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The profit attributable to the ordinary equity holders of the parent is adjusted for the effects of dilutive potential ordinary shares.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The weighted average number of shares outstanding is adjusted for the effects of dilutive potential ordinary shares.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The calculation adjusts the number of shares, while the numerator remains the basic earnings figure.","es":""},"correct":false,"feedback":{"fr":"","en":"Both terms are adjusted: the profit attributable to ordinary equity holders is also adjusted, for the effects of dilutive potential shares (IAS 33). Rule to remember: Numerator and denominator are adjusted (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"The calculation concerns dilutive potential ordinary shares.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The calculation takes dilutive potential ordinary shares together with those that are not, in order to reflect the instruments issued.","es":""},"correct":false,"feedback":{"fr":"","en":"The text concerns the effects of dilutive potential ordinary shares, not those of all the instruments issued (IAS 33). Rule to remember: Dilutive potential shares are the ones that enter the adjustment (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000048","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000048","tested_point":"QST.IAS33.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-numerator"},"references":["IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Quercy SA, which has convertible debt, describes the adjustment to the diluted numerator in a note. Which sentence is incorrect?","es":""},"explanation":{"fr":"","en":"Basic earnings is adjusted for the after-tax effects of dividends, interest and other changes in income or expense that would no longer be incurred if the dilutive potential shares were converted (IAS 33, para. 33). Adding interest before tax therefore overstates the numerator. Trap: forgetting the tax effect of the interest expense removed. Rule to remember: Interest on convertible debt is added to the diluted numerator after tax (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding interest on convertible debt before tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The numerator is adjusted for the after-tax effects of interest that would no longer be incurred on conversion.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: this is the adjustment described for interest on convertible debt (IAS 33). Rule to remember: The diluted numerator is adjusted for interest saved, after tax (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The interest on the convertible debt is added to the numerator at its pre-tax amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Dividends on convertible preference shares, which would no longer be borne after conversion, are also added to the numerator, after tax.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the adjustment covers the after-tax effects of dividends as well as interest that would disappear on conversion (IAS 33). Rule to remember: Dividends and interest removed by conversion adjust the numerator (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Another change in income or expense that would disappear after conversion falls within the adjustment, after tax.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the text includes other changes in income or expense that would no longer be incurred if the dilutive potential shares were converted (IAS 33). Rule to remember: The adjustment also covers these changes, after tax (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000049","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000049","tested_point":"QST.IAS33.000049","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-numerator"},"references":["IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"Vernet SA has issued a convertible bond whose interest expense for the year is {pre_tax_interest} (in euros). This expense is deductible at a rate of {tax_rate}% (case datum). The basic profit attributable to ordinary equity holders is {earnings_ordinary}. On conversion, the interest expense would no longer be incurred. Calculate the after-tax adjustment to be made to the numerator of diluted earnings, then the diluted numerator.","es":""},"explanation":{"fr":"","en":"Approach: 200,000 x (1 − 25%) = 150,000; 3,000,000 + 150,000 = 3,150,000. Basic earnings is adjusted for the after-tax effects of interest that would no longer be incurred if the dilutive potential shares were converted (IAS 33, para. 33); the tax rate is a case datum. Trap: adding the 200,000 before tax (a numerator of 3,200,000). Rule to remember: The interest saving is added to the numerator after tax (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding interest on convertible debt before tax.","es":""},"format":"CALCULATION","placeholders":[{"id":"pre_tax_interest","value":"200000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"},{"id":"earnings_ordinary","value":"3000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Interest expense for the year before tax","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate applicable to this expense","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3000000","unit":"EUR"}],"steps":[{"id":"AFTER_TAX_INTEREST","label":{"fr":"","en":"Interest saved after tax","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_NUMERATOR","label":{"fr":"","en":"Numerator of diluted earnings","es":""},"answer":3150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AFTER_TAX_INTEREST","meaning":{"fr":"","en":"Interest saved after tax","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest expense for the year before tax","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate applicable to this expense","es":""},"value":25,"unit":"PERCENT"}],"result":150000,"unit":"EUR"},{"step":"DILUTED_NUMERATOR","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest saved after tax","es":""},"value":150000,"unit":"EUR"}],"result":3150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The interest saving is added to the numerator after tax (IAS 33).","es":""},"references":["REF.IAS33.33"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000050","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.NUMERATOR","IAS33.BASIC.PREFERENCE_DIVIDENDS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000050","tested_point":"QST.IAS33.000050","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000004","section_id":"rule-deduction"},"references":["IAS 33 §33","IAS 33 §12"],"exercise":{"prompt":{"fr":"","en":"The basic profit of Bernay SA attributable to ordinary equity holders, already net of preference dividends, is {earnings_ordinary} (in euros). The entity has two dilutive convertible instruments: a bond whose interest expense before tax is {pre_tax_interest}, deductible at a rate of {tax_rate}% (case datum), and convertible preference shares whose dividends of {convertible_pref_dividends}, already deducted in basic earnings, carry no tax effect. Calculate the numerator of diluted earnings if both instruments are included.","es":""},"explanation":{"fr":"","en":"Approach: 90,000 x (1 − 30%) = 63,000; 2,000,000 + 63,000 + 40,000 = 2,103,000. Basic earnings is adjusted for the after-tax effects of dividends and interest that would no longer be incurred on conversion (IAS 33): the preference dividends, deducted in basic earnings (IAS 33), are added back. Trap: adding the interest before tax or forgetting to add back the dividends. Rule to remember: After-tax interest and dividends removed by conversion are added to the diluted numerator (IAS 33).","es":""},"common_error":{"fr":"","en":"Forgetting to add back the dividends on convertible preference shares in the diluted numerator.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"2000000","unit":"EUR"},{"id":"pre_tax_interest","value":"90000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"},{"id":"convertible_pref_dividends","value":"40000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Basic profit attributable to ordinary equity holders","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Interest expense of the bond before tax","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate applicable to the interest","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Dividends on the convertible preference shares","es":""},"value":"40000","unit":"EUR"}],"steps":[{"id":"DILUTED_NUMERATOR","label":{"fr":"","en":"Numerator of diluted earnings","es":""},"answer":2103000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_NUMERATOR","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"expression":"a + (b * (1 - c)) + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Basic profit attributable to ordinary equity holders","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest expense of the bond before tax","es":""},"value":90000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Tax rate applicable to the interest","es":""},"value":30,"unit":"PERCENT"},{"symbol":"d","meaning":{"fr":"","en":"Dividends on the convertible preference shares","es":""},"value":40000,"unit":"EUR"}],"result":2103000,"unit":"EUR"}],"rationale":{"fr":"","en":"After-tax interest and dividends removed by conversion are added to the diluted numerator (IAS 33).","es":""},"references":["REF.IAS33.33","REF.IAS33.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000051","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONVERTIBLES"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000051","tested_point":"QST.IAS33.000051","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-convertibles"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"At 1 January, Arles SA already held a convertible bond issued two years earlier, convertible into {conversion_shares} ordinary shares. For the year, the profit attributable to ordinary equity holders is {earnings_ordinary} (in euros) and the weighted average number of shares is {weighted_shares}. The bond's interest, after tax, is {after_tax_interest}. The bond is dilutive (case datum). Calculate the diluted numerator, the diluted number of shares and diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 3,150,000 + 150,000 = 3,300,000; 4,000,000 + 400,000 = 4,400,000; 3,300,000 / 4,400,000 = 0.75. The bond, issued before the start of the period, is deemed converted at the start of the period: the 400,000 shares count for the whole year (IAS 33, para. 36) and the numerator is adjusted for interest after tax (IAS 33). Trap: weighting these shares as if conversion occurred at the reporting date. Rule to remember: An instrument issued before the period is deemed converted at the start of the period (IAS 33).","es":""},"common_error":{"fr":"","en":"Weighting the conversion shares as if conversion occurred at the reporting date.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"3150000","unit":"EUR"},{"id":"weighted_shares","value":"4000000","unit":"UNITS"},{"id":"after_tax_interest","value":"150000","unit":"EUR"},{"id":"conversion_shares","value":"400000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"4000000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond after tax","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued on conversion","es":""},"value":"400000","unit":"UNITS"}],"steps":[{"id":"DILUTED_NUMERATOR","label":{"fr":"","en":"Numerator of diluted earnings","es":""},"answer":3300000,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_SHARES","label":{"fr":"","en":"Number of shares for diluted earnings","es":""},"answer":4400000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.75,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_NUMERATOR","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest on the bond after tax","es":""},"value":150000,"unit":"EUR"}],"result":3300000,"unit":"EUR"},{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Number of shares for diluted earnings","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":4000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":400000,"unit":"UNITS"}],"result":4400000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of shares for diluted earnings","es":""},"value":4400000,"unit":"UNITS"}],"result":0.75,"unit":"EUR"}],"rationale":{"fr":"","en":"An instrument issued before the period is deemed converted at the start of the period (IAS 33).","es":""},"references":["REF.IAS33.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000052","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONVERTIBLES"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000052","tested_point":"QST.IAS33.000052","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-convertibles"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"On 1 July, Pontoise SA issues a bond convertible into {conversion_shares} ordinary shares. For the year ended 31 December, the profit attributable to ordinary equity holders is {earnings_ordinary} (in euros) and the weighted average number of shares is {weighted_shares}. The bond's interest expense for the year, after tax, is {after_tax_interest}. The bond is dilutive (case datum) and remains outstanding {months_since_issue} months (weighting in months). Calculate the weighted conversion shares and then diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 300,000 x 6 / 12 = 150,000; (2,445,000 + 75,000) / (3,000,000 + 150,000) = 2,520,000 / 3,150,000 = 0.80. Dilutive potential shares are deemed converted at the start of the period or, if later, at the date of issue (IAS 33, para. 36): here 1 July, that is 6 months. The numerator is adjusted for interest after tax (IAS 33). Trap: assuming conversion on 1 January (the 300,000 shares would count in full). Rule to remember: For an instrument issued during the period, conversion is presumed at the date of issue (IAS 33).","es":""},"common_error":{"fr":"","en":"Ignoring an issue date that is later than the start of the period.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"2445000","unit":"EUR"},{"id":"weighted_shares","value":"3000000","unit":"UNITS"},{"id":"after_tax_interest","value":"75000","unit":"EUR"},{"id":"conversion_shares","value":"300000","unit":"UNITS"},{"id":"months_since_issue","value":"6","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"2445000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"Interest expense for the year after tax","es":""},"value":"75000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued on conversion","es":""},"value":"300000","unit":"UNITS"},{"label":{"fr":"","en":"Months elapsed since issue","es":""},"value":"6","unit":"MONTHS"}],"steps":[{"id":"WEIGHTED_CONVERSION_SHARES","label":{"fr":"","en":"Weighted conversion shares","es":""},"answer":150000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.8,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_CONVERSION_SHARES","meaning":{"fr":"","en":"Weighted conversion shares","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":300000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Months elapsed since issue","es":""},"value":6,"unit":"MONTHS"}],"result":150000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"(a + b) / (c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":2445000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest expense for the year after tax","es":""},"value":75000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Weighted conversion shares","es":""},"value":150000,"unit":"UNITS"}],"result":0.8,"unit":"EUR"}],"rationale":{"fr":"","en":"For an instrument issued during the period, conversion is presumed at the date of issue (IAS 33).","es":""},"references":["REF.IAS33.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000053","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONVERTIBLES"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000053","tested_point":"QST.IAS33.000053","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-convertibles"},"references":["IAS 33 §33","IAS 33 §36"],"exercise":{"prompt":{"fr":"","en":"In the working note of Ormes SA on diluted earnings, which sentence about a convertible bond issued on 1 July is incorrect?","es":""},"explanation":{"fr":"","en":"Dilutive potential ordinary shares are deemed converted at the start of the period or, if later, at the date of issue; the number of shares used is the weighted average number plus the shares that would be issued on conversion (IAS 33, para. 36), and the numerator is adjusted for the after-tax effects of interest (IAS 33). The assumption of conversion on 1 January is therefore incorrect for an issue of 1 July. Trap: ignoring an issue date later than the start of the period. Rule to remember: For an instrument issued during the period, conversion is presumed at the date of issue (IAS 33).","es":""},"common_error":{"fr":"","en":"Ignoring an issue date later than the start of the period for the presumed conversion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The bond is assumed to be converted at its issue date, which is later than the start of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the issue date, later than the start of the period, is the one used (IAS 33). Rule to remember: Conversion is deemed to take place at the start of the period or, if later, at issue (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The number of shares for diluted earnings is the weighted average number plus the shares that would be issued on conversion.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the denominator is the weighted average number plus the conversion shares (IAS 33). Rule to remember: The diluted denominator adds the conversion shares to the weighted average number (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The bond is assumed to be converted on 1 January, the start of the year, even though it was issued on 1 July.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The numerator is adjusted for the interest saved on the bond, after the tax effect.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the numerator is adjusted for the after-tax effects of interest that would no longer be incurred (IAS 33). Rule to remember: The interest saving is added after tax (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000054","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000004","tested_point":"VG.IAS33.000004","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-tsm"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"During the year, Olivet SA has {number_of_options} options outstanding, each entitling its holder to one ordinary share at an exercise price of {exercise_price} (in euros). The average market price of the share during the year is {average_price}. Using the treasury stock method, calculate the number of incremental shares to add to the denominator of diluted earnings.","es":""},"explanation":{"fr":"","en":"Approach: 300,000 x (10 − 8) / 10 = 60,000 incremental shares. The options are assumed to be exercised; the assumed proceeds are regarded as received from issuing shares at the average market price, and the difference between the shares issued and those that would have been issued at that price is treated as an issue for no consideration (IAS 33, para. 45); the options are dilutive because the average price exceeds the exercise price (IAS 33). Trap: adding the 300,000 shares under option without deducting those the proceeds would have financed. Rule to remember: Only the shares issued in excess of those the assumed proceeds would have financed are added to the denominator (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding all the shares under option to the denominator without deducting those that would have been bought back with the assumed proceeds.","es":""},"format":"CALCULATION","placeholders":[{"id":"number_of_options","value":"300000","unit":"UNITS"},{"id":"exercise_price","value":"8","unit":"EUR"},{"id":"average_price","value":"10","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Options outstanding","es":""},"value":"300000","unit":"UNITS"},{"label":{"fr":"","en":"Exercise price","es":""},"value":"8","unit":"EUR"},{"label":{"fr":"","en":"Average market price for the period","es":""},"value":"10","unit":"EUR"}],"steps":[{"id":"INCREMENTAL_SHARES","label":{"fr":"","en":"Incremental shares for diluted earnings","es":""},"answer":60000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"INCREMENTAL_SHARES","meaning":{"fr":"","en":"Incremental shares for diluted earnings","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Options outstanding","es":""},"value":300000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period","es":""},"value":10,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Exercise price","es":""},"value":8,"unit":"EUR"}],"result":60000,"unit":"UNITS"}],"rationale":{"fr":"","en":"Only the shares issued in excess of those the assumed proceeds would have financed are added to the denominator (IAS 33).","es":""},"references":["REF.IAS33.45"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000055","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000004","tested_point":"VG.IAS33.000004","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-tsm"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Savoie SA has issued options on its own shares: {number_of_options} options, each entitling its holder to one ordinary share at an exercise price of {exercise_price} (in euros). The average market price for the year is {average_price}. The profit attributable to ordinary equity holders is {earnings_ordinary} and the weighted average number of shares is {weighted_shares}; the options have no effect on the numerator. Calculate the incremental shares using the treasury stock method, then diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: 480,000 x (20 − 12.5) / 20 = 180,000 shares; 6,000,000 + 180,000 = 6,180,000; 5,400,000 / 6,180,000 = 0.87. The assumed proceeds of exercise are regarded as received from issuing shares at the average price, and only the shares issued in excess are treated as issued for no consideration (IAS 33, para. 45); the options are dilutive because the average price exceeds the exercise price (IAS 33). Trap: adding the 480,000 shares (a result of 0.83). Rule to remember: The treasury stock method adds only the incremental shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding all the shares under option to the denominator without deducting those that would have been bought back with the assumed proceeds.","es":""},"format":"CALCULATION","placeholders":[{"id":"number_of_options","value":"480000","unit":"UNITS"},{"id":"exercise_price","value":"12.5","unit":"EUR"},{"id":"average_price","value":"20","unit":"EUR"},{"id":"earnings_ordinary","value":"5400000","unit":"EUR"},{"id":"weighted_shares","value":"6000000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Options outstanding","es":""},"value":"480000","unit":"UNITS"},{"label":{"fr":"","en":"Exercise price","es":""},"value":"12.5","unit":"EUR"},{"label":{"fr":"","en":"Average market price for the period","es":""},"value":"20","unit":"EUR"},{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"5400000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"6000000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_SHARES","label":{"fr":"","en":"Incremental shares","es":""},"answer":180000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.87,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_SHARES","meaning":{"fr":"","en":"Incremental shares","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Options outstanding","es":""},"value":480000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period","es":""},"value":20,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Exercise price","es":""},"value":12.5,"unit":"EUR"}],"result":180000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":5400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":6000000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Incremental shares","es":""},"value":180000,"unit":"UNITS"}],"result":0.87,"unit":"EUR"}],"rationale":{"fr":"","en":"The treasury stock method adds only the incremental shares (IAS 33).","es":""},"references":["REF.IAS33.45"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000056","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.OPTIONS_TSM"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000056","tested_point":"QST.IAS33.000056","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-tsm"},"references":["IAS 33 §45","IAS 33 §46"],"exercise":{"prompt":{"fr":"","en":"Cormier SA has two series of options on its own shares, each option entitling its holder to one ordinary share. Series A: {series_a_options} options at an exercise price of {series_a_price} (in euros). Series B: {series_b_options} options at an exercise price of {series_b_price}. The average market price for the year is {average_price}. Each series is considered separately. Calculate the total number of incremental shares to be included for diluted earnings.","es":""},"explanation":{"fr":"","en":"Approach: series A 200,000 x (20 − 15) / 20 = 50,000; series B 0, because its exercise price of 25 exceeds the average price of 20: the total is 50,000. Options are dilutive when they would result in the issue of shares at a price below the average market price; they have a dilutive effect only if the average price exceeds the exercise price (IAS 33), and the difference between the shares issued and those that would be issued at the average price is treated as an issue for no consideration (IAS 33, para. 45). Trap: including series B. Rule to remember: An option whose exercise price exceeds the average price adds no shares (IAS 33).","es":""},"common_error":{"fr":"","en":"Including a series of options whose exercise price exceeds the average price.","es":""},"format":"CALCULATION","placeholders":[{"id":"series_a_options","value":"200000","unit":"UNITS"},{"id":"series_a_price","value":"15","unit":"EUR"},{"id":"series_b_options","value":"100000","unit":"UNITS"},{"id":"series_b_price","value":"25","unit":"EUR"},{"id":"average_price","value":"20","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Series A options","es":""},"value":"200000","unit":"UNITS"},{"label":{"fr":"","en":"Series A exercise price","es":""},"value":"15","unit":"EUR"},{"label":{"fr":"","en":"Series B options","es":""},"value":"100000","unit":"UNITS"},{"label":{"fr":"","en":"Series B exercise price","es":""},"value":"25","unit":"EUR"},{"label":{"fr":"","en":"Average market price for the period","es":""},"value":"20","unit":"EUR"}],"steps":[{"id":"INCREMENTAL_SHARES_TOTAL","label":{"fr":"","en":"Total incremental shares","es":""},"answer":50000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"INCREMENTAL_SHARES_TOTAL","meaning":{"fr":"","en":"Total incremental shares","es":""},"expression":"a * (b - c) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Series A options","es":""},"value":200000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period","es":""},"value":20,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Series A exercise price","es":""},"value":15,"unit":"EUR"}],"result":50000,"unit":"UNITS"}],"rationale":{"fr":"","en":"An option whose exercise price exceeds the average price adds no shares (IAS 33).","es":""},"references":["REF.IAS33.45"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000057","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000057","tested_point":"QST.IAS33.000057","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §41","IAS 33 §42"],"exercise":{"prompt":{"fr":"","en":"Which statements about the dilution test for potential ordinary shares are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Potential shares are dilutive if their conversion decreases earnings per share from continuing operations (IAS 33, para. 41); the diluted calculation does not assume the conversion of antidilutive instruments (IAS 33). Profit from continuing operations attributable to the parent is the control number, and a loss from discontinued operations can make total profit antidilutive while continuing operations remain dilutive (IAS 33, para. 42). Trap: assessing dilution on total net profit. Rule to remember: Dilution is assessed on the result from continuing operations (IAS 33).","es":""},"common_error":{"fr":"","en":"Including an instrument because it reduces total profit although it increases earnings per share from continuing operations.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Potential ordinary shares are dilutive when their conversion decreases earnings per share from continuing operations, or increases the loss per share from those operations.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An instrument is dilutive as soon as it decreases total net earnings per share, even if earnings per share from continuing operations increases.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion relates to earnings per share from continuing operations, which serves as the control number, not to total net profit (IAS 33). Rule to remember: The dilution test is made on continuing operations (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"Profit from continuing operations attributable to the parent serves as the control number for establishing whether potential shares are dilutive or antidilutive.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A loss from discontinued operations can make total profit antidilutive while continuing operations remain dilutive.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The calculation of diluted earnings assumes the conversion of antidilutive instruments in order to present the most prudent assumption.","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation of diluted earnings does not assume the conversion, exercise or issue of potential shares whose effect would be antidilutive (IAS 33). Rule to remember: Antidilutive instruments are left out of the diluted calculation (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000058","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000058","tested_point":"QST.IAS33.000058","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §41","IAS 33 §42"],"exercise":{"prompt":{"fr":"","en":"For the year, Estrel SA has a profit from continuing operations attributable to ordinary equity holders of {continuing_earnings} (in euros) and a post-tax loss from discontinued operations of {discontinued_loss}. The weighted average number of ordinary shares is {weighted_shares}. A convertible bond, outstanding all year, would give {conversion_shares} shares and remove interest of {after_tax_interest} after tax. Calculate the incremental earnings per share of the bond, then, after establishing on continuing operations whether it is dilutive, the diluted earnings per share of total profit. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: incremental 120,000 / 250,000 = 0.48, below basic earnings per share from continuing operations (2,000,000 / 2,000,000 = 1.00): the bond is dilutive for continuing operations, which serve as the control number (IAS 33, paras. 41 and 42), so it is included (IAS 33, paras. 41 and 42). Total profit: (2,000,000 − 500,000 + 120,000) / (2,000,000 + 250,000) = 1,620,000 / 2,250,000 = 0.72. Trap: judging dilution on total profit. Rule to remember: The dilution test is made on continuing operations, then the instrument retained also applies to total profit (IAS 33).","es":""},"common_error":{"fr":"","en":"Judging dilution on total profit rather than on that of continuing operations.","es":""},"format":"CALCULATION","placeholders":[{"id":"continuing_earnings","value":"2000000","unit":"EUR"},{"id":"discontinued_loss","value":"500000","unit":"EUR"},{"id":"weighted_shares","value":"2000000","unit":"UNITS"},{"id":"after_tax_interest","value":"120000","unit":"EUR"},{"id":"conversion_shares","value":"250000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Post-tax loss from discontinued operations","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"2000000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond after tax","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued on conversion","es":""},"value":"250000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_EPS","label":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"answer":0.48,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_EPS_TOTAL","label":{"fr":"","en":"Diluted earnings per share of total profit","es":""},"answer":0.72,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_EPS","meaning":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on the bond after tax","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":250000,"unit":"UNITS"}],"result":0.48,"unit":"EUR","rationale":{"fr":"","en":"Approach: incremental 120,000 / 250,000 = 0.48, below basic earnings per share from continuing operations (2,000,000 / 2,000,000 = 1.00): the bond is dilutive for continuing operations, which serve as the control number (IAS 33, paras. 41 and 42), so it is included (IAS 33, paras. 41 and 42).","es":""}}],"rationale":{"fr":"","en":"The dilution test is made on continuing operations, then the instrument retained also applies to total profit (IAS 33).","es":""},"references":["REF.IAS33.41","REF.IAS33.42"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000059","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.TEST"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000059","tested_point":"QST.IAS33.000059","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §41","IAS 33 §42"],"exercise":{"prompt":{"fr":"","en":"Gironde SA reports, for the year, profit from continuing operations of {continuing_earnings} (in euros) attributable to ordinary equity holders, plus the post-tax profit of a discontinued operation of {discontinued_profit}. The entity has {weighted_shares} shares on a weighted average basis. A convertible bond exists all year: {conversion_shares} shares on conversion and {after_tax_interest} of interest removed after tax. Determine the incremental earnings per share of the bond, then, once the dilution test has been made, diluted earnings per share of total profit. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: incremental 120,000 / 250,000 = 0.48, above basic earnings per share from continuing operations (960,000 / 2,400,000 = 0.40): the bond is antidilutive for continuing operations, which serve as the control number (IAS 33, paras. 41 and 42), and is not included (IAS 33, paras. 41 and 42). Diluted earnings on total profit remain the basic figure: (960,000 + 480,000) / 2,400,000 = 0.60. Trap: including the bond because it lowers total earnings per share (0.59). Rule to remember: An instrument that is antidilutive for continuing operations is left out, even if it would lower total earnings per share (IAS 33).","es":""},"common_error":{"fr":"","en":"Including an instrument because it reduces total profit although it increases earnings per share from continuing operations.","es":""},"format":"CALCULATION","placeholders":[{"id":"continuing_earnings","value":"960000","unit":"EUR"},{"id":"discontinued_profit","value":"480000","unit":"EUR"},{"id":"weighted_shares","value":"2400000","unit":"UNITS"},{"id":"after_tax_interest","value":"120000","unit":"EUR"},{"id":"conversion_shares","value":"250000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":"960000","unit":"EUR"},{"label":{"fr":"","en":"Post-tax profit from discontinued operations","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"2400000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond after tax","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued on conversion","es":""},"value":"250000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_EPS","label":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"answer":0.48,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_EPS_TOTAL","label":{"fr":"","en":"Diluted earnings per share of total profit","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_EPS","meaning":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on the bond after tax","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":250000,"unit":"UNITS"}],"result":0.48,"unit":"EUR","rationale":{"fr":"","en":"Approach: incremental 120,000 / 250,000 = 0.48, above basic earnings per share from continuing operations (960,000 / 2,400,000 = 0.40): the bond is antidilutive for continuing operations, which serve as the control number (IAS 33, paras. 41 and 42), and is not included (IAS 33, paras. 41 and 42).","es":""}},{"step":"DILUTED_EPS_TOTAL","meaning":{"fr":"","en":"Diluted earnings per share of total profit","es":""},"expression":"(a + b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-tax profit from discontinued operations","es":""},"value":480000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":2400000,"unit":"UNITS"}],"result":0.6,"unit":"EUR"}],"rationale":{"fr":"","en":"An instrument that is antidilutive for continuing operations is left out, even if it would lower total earnings per share (IAS 33).","es":""},"references":["REF.IAS33.41","REF.IAS33.42"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000060","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SEQUENCING"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000060","tested_point":"QST.IAS33.000060","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-sequence"},"references":["IAS 33 §44"],"exercise":{"prompt":{"fr":"","en":"Argonne SA is considering two dilutive instruments. A convertible bond would remove {bond_adjustment} of interest after tax (in euros) and would give {bond_shares} shares. Options, under the treasury stock method, would give {option_shares} incremental shares with no effect on the numerator. Calculate the incremental earnings per share of each instrument, in order to establish the sequence in which they are taken into account.","es":""},"explanation":{"fr":"","en":"Approach: bond 72,000 / 120,000 = 0.60; options 0 / 90,000 = 0. Each issue of potential shares is considered separately and those with the lowest incremental earnings per share are included before those with a higher figure (IAS 33, para. 44): here the options (0) come before the bond (0.60). Trap: following the order of issue or of presentation of the instruments. Rule to remember: Instruments are ranked by increasing incremental earnings per share (IAS 33, para. 44).","es":""},"common_error":{"fr":"","en":"Including instruments in the order they were issued rather than by increasing incremental earnings.","es":""},"format":"CALCULATION","placeholders":[{"id":"bond_adjustment","value":"72000","unit":"EUR"},{"id":"bond_shares","value":"120000","unit":"UNITS"},{"id":"option_shares","value":"90000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":"72000","unit":"EUR"},{"label":{"fr":"","en":"Shares arising from conversion of the bond","es":""},"value":"120000","unit":"UNITS"},{"label":{"fr":"","en":"Incremental shares from the options","es":""},"value":"90000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_EPS_BOND","label":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"},{"id":"INCREMENTAL_EPS_OPTIONS","label":{"fr":"","en":"Incremental earnings per share of the options","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_EPS_BOND","meaning":{"fr":"","en":"Incremental earnings per share of the bond","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":72000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares arising from conversion of the bond","es":""},"value":120000,"unit":"UNITS"}],"result":0.6,"unit":"EUR"}],"rationale":{"fr":"","en":"Instruments are ranked by increasing incremental earnings per share (IAS 33, para. 44).","es":""},"references":["REF.IAS33.44"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000061","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SEQUENCING","IAS33.DILUTED.TEST"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000005","tested_point":"VG.IAS33.000005","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §44","IAS 33 §41"],"exercise":{"prompt":{"fr":"","en":"For the year, Rhodes SA has a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros) and a weighted average number of shares of {weighted_shares}; all the potential shares below are outstanding all year and dilutive judged against basic earnings alone. In order of issue: a convertible bond (interest removed of {bond_adjustment} after tax, {bond_shares} shares), convertible preference shares (dividends removed of {pref_dividends}, {pref_shares} shares) and options ({option_shares} incremental shares with no effect on the numerator). Calculate the incremental earnings per share of the convertible preference shares, then diluted earnings per share by ranking the instruments by increasing incremental earnings. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: incremental figures options 0, bond 420,000 / 700,000 = 0.60, preference 1,200,000 / 800,000 = 1.50. Sequence: basic 1.20; with the options 1.14; with the bond 1.08; with the preference shares 1.13, which increases the figure: they are antidilutive and excluded. Diluted earnings: 1.08. Each issue is considered separately and those with the lowest incremental figure are included first (IAS 33, para. 44). Trap: following the order of issue. Rule to remember: Instruments are included by increasing incremental earnings (IAS 33, para. 44) and one that increases earnings per share is excluded, being antidilutive (IAS 33, para. 41).","es":""},"common_error":{"fr":"","en":"Including an instrument that increases earnings per share.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"6000000","unit":"EUR"},{"id":"weighted_shares","value":"5000000","unit":"UNITS"},{"id":"bond_adjustment","value":"420000","unit":"EUR"},{"id":"bond_shares","value":"700000","unit":"UNITS"},{"id":"pref_dividends","value":"1200000","unit":"EUR"},{"id":"pref_shares","value":"800000","unit":"UNITS"},{"id":"option_shares","value":"250000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"6000000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"5000000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Shares arising from conversion of the bond","es":""},"value":"700000","unit":"UNITS"},{"label":{"fr":"","en":"Dividends on the convertible preference shares","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Shares arising from conversion of the preference shares","es":""},"value":"800000","unit":"UNITS"},{"label":{"fr":"","en":"Incremental shares from the options","es":""},"value":"250000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_EPS_PREF","label":{"fr":"","en":"Incremental earnings per share of the preference shares","es":""},"answer":1.5,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":1.08,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_EPS_PREF","meaning":{"fr":"","en":"Incremental earnings per share of the preference shares","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dividends on the convertible preference shares","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares arising from conversion of the preference shares","es":""},"value":800000,"unit":"UNITS"}],"result":1.5,"unit":"EUR"}],"rationale":{"fr":"","en":"Instruments are included by increasing incremental earnings (IAS 33, para. 44) and one that increases earnings per share is excluded, being antidilutive (IAS 33, para. 41).","es":""},"references":["REF.IAS33.44","REF.IAS33.41"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000062","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.SEQUENCING","IAS33.DILUTED.TEST"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000005","tested_point":"VG.IAS33.000005","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-test"},"references":["IAS 33 §44","IAS 33 §41"],"exercise":{"prompt":{"fr":"","en":"The Cévennes group reports, for the year, a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros) for a weighted average of {weighted_shares} shares. Three instruments, outstanding all year, are to be examined: convertible preference shares (dividends of {pref_dividends} removed, {pref_shares} shares), options ({option_shares} incremental shares, with no effect on the numerator) and a convertible bond (interest of {bond_adjustment} removed after tax, {bond_shares} shares). Calculate the incremental earnings per share of the convertible preference shares, then diluted earnings per share, the instruments being included by increasing incremental earnings. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: incremental figures options 0, bond 150,000 / 250,000 = 0.60, preference 210,000 / 150,000 = 1.40. Sequence: basic 1.20; options 1.15; bond 1.11; preference 1.12: the figure goes back up, the instrument is antidilutive and excluded. Diluted earnings: 1.11. Instruments with the lowest incremental figure are included before those with a higher one (IAS 33, para. 44). Trap: including the preference shares first because they are cited first. Rule to remember: An instrument that increases earnings per share is antidilutive and is not included (IAS 33, para. 41).","es":""},"common_error":{"fr":"","en":"Including instruments in the order presented rather than by increasing incremental earnings.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"3000000","unit":"EUR"},{"id":"weighted_shares","value":"2500000","unit":"UNITS"},{"id":"bond_adjustment","value":"150000","unit":"EUR"},{"id":"bond_shares","value":"250000","unit":"UNITS"},{"id":"pref_dividends","value":"210000","unit":"EUR"},{"id":"pref_shares","value":"150000","unit":"UNITS"},{"id":"option_shares","value":"100000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"2500000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Shares arising from conversion of the bond","es":""},"value":"250000","unit":"UNITS"},{"label":{"fr":"","en":"Dividends on the convertible preference shares","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Shares arising from conversion of the preference shares","es":""},"value":"150000","unit":"UNITS"},{"label":{"fr":"","en":"Incremental shares from the options","es":""},"value":"100000","unit":"UNITS"}],"steps":[{"id":"INCREMENTAL_EPS_PREF","label":{"fr":"","en":"Incremental earnings per share of the preference shares","es":""},"answer":1.4,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":1.11,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000063","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONTINGENT"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000063","tested_point":"QST.IAS33.000063","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-contingent"},"references":["IAS 33 §52"],"exercise":{"prompt":{"fr":"","en":"For the year, Tourny SA has a weighted average number of shares of {weighted_shares}. An agreement entered into before the start of the year (in force {months_of_contract} months of the year) provides for two tranches of shares to be issued at the end of a two-year contingency period, for little or no consideration: {tranche_a_shares} shares if cumulative revenue reaches a target; {tranche_b_shares} shares if cumulative operating profit reaches another target. At the end of the first year, cumulative revenue already reaches the target of tranche A; cumulative operating profit does not reach that of tranche B. Calculate the contingent shares to include in diluted earnings, then the number of shares in the diluted denominator (excluding other instruments).","es":""},"explanation":{"fr":"","en":"Approach: tranche A 200,000 x 12 / 12 = 200,000; tranche B 0; 3,000,000 + 200,000 = 3,200,000. If the contingency period has not ended, the number of potential shares is that which would be issued if the reporting date were the end of the contingency period (IAS 33, para. 52): tranche A would be issued, tranche B would not. Trap: waiting for the end of the contingency period, or including tranche B (100,000 shares). Rule to remember: For diluted earnings, the shares retained are those that would be issued if the reporting date were the end of the contingency period (IAS 33, para. 52).","es":""},"common_error":{"fr":"","en":"Excluding shares whose conditions would be met if the reporting date were the end of the contingency period.","es":""},"format":"CALCULATION","placeholders":[{"id":"weighted_shares","value":"3000000","unit":"UNITS"},{"id":"tranche_a_shares","value":"200000","unit":"UNITS"},{"id":"tranche_b_shares","value":"100000","unit":"UNITS"},{"id":"months_of_contract","value":"12","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"Tranche A shares (revenue)","es":""},"value":"200000","unit":"UNITS"},{"label":{"fr":"","en":"Tranche B shares (operating profit)","es":""},"value":"100000","unit":"UNITS"},{"label":{"fr":"","en":"Months of the year the agreement was in force","es":""},"value":"12","unit":"MONTHS"}],"steps":[{"id":"CONTINGENT_SHARES_INCLUDED","label":{"fr":"","en":"Contingent shares included","es":""},"answer":200000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_SHARES","label":{"fr":"","en":"Number of shares in the diluted denominator","es":""},"answer":3200000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"CONTINGENT_SHARES_INCLUDED","meaning":{"fr":"","en":"Contingent shares included","es":""},"expression":"a * b / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tranche A shares (revenue)","es":""},"value":200000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Months of the year the agreement was in force","es":""},"value":12,"unit":"MONTHS"}],"result":200000,"unit":"UNITS"},{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Number of shares in the diluted denominator","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Tranche A shares (revenue)","es":""},"value":200000,"unit":"UNITS"}],"result":3200000,"unit":"UNITS"}],"rationale":{"fr":"","en":"For diluted earnings, the shares retained are those that would be issued if the reporting date were the end of the contingency period (IAS 33, para. 52).","es":""},"references":["REF.IAS33.52"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000064","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.CONTINGENT"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000064","tested_point":"QST.IAS33.000064","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000010","section_id":"rule-contingent"},"references":["IAS 33 §52","IAS 33 §54"],"exercise":{"prompt":{"fr":"","en":"Bonnet SA has a profit attributable to ordinary equity holders of {earnings_ordinary} (in euros) and a weighted average number of shares of {weighted_shares}. An agreement in force all year, with a contingency period that has not ended, provides for the following for little or no consideration: {tranche1_shares} shares if cumulative profit reaches a target, attained at the level of the reporting date; and {tranche2_shares} shares if the share price is at least {required_price} at the end of the contingency period, the closing price being {closing_price}. Calculate the number of shares in the diluted denominator (excluding other instruments) and diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: profit-linked tranche 120,000 (target attained at the level of the reporting date); price-linked tranche 0 (closing price 28 below 30); 3,880,000 + 120,000 = 4,000,000; 4,000,000 / 4,000,000 = 1.00. The number of shares retained is that which would be issued if the reporting date were the end of the contingency period (IAS 33, para. 52); for a market price condition, the shares retained are those that would be issued if the closing price were the price at the end of that period (IAS 33). Trap: including the price-linked tranche (80,000 shares). Rule to remember: Each condition is assessed at the state of the reporting date, as if the contingency period ended then (IAS 33, para. 52).","es":""},"common_error":{"fr":"","en":"Including shares whose price condition would not be met at the closing price.","es":""},"format":"CALCULATION","placeholders":[{"id":"earnings_ordinary","value":"4000000","unit":"EUR"},{"id":"weighted_shares","value":"3880000","unit":"UNITS"},{"id":"tranche1_shares","value":"120000","unit":"UNITS"},{"id":"tranche2_shares","value":"80000","unit":"UNITS"},{"id":"closing_price","value":"28","unit":"EUR"},{"id":"required_price","value":"30","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":"4000000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"3880000","unit":"UNITS"},{"label":{"fr":"","en":"Shares of the profit-linked tranche","es":""},"value":"120000","unit":"UNITS"},{"label":{"fr":"","en":"Shares of the price-linked tranche","es":""},"value":"80000","unit":"UNITS"},{"label":{"fr":"","en":"Closing price","es":""},"value":"28","unit":"EUR"},{"label":{"fr":"","en":"Price required at the end of the contingency period","es":""},"value":"30","unit":"EUR"}],"steps":[{"id":"DILUTED_SHARES","label":{"fr":"","en":"Number of shares in the diluted denominator","es":""},"answer":4000000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":1,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Number of shares in the diluted denominator","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3880000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Shares of the profit-linked tranche","es":""},"value":120000,"unit":"UNITS"}],"result":4000000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary equity holders","es":""},"value":4000000,"unit":"EUR"}],"result":1,"unit":"EUR"}],"rationale":{"fr":"","en":"Each condition is assessed at the state of the reporting date, as if the contingency period ended then (IAS 33, para. 52).","es":""},"references":["REF.IAS33.52"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000067","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.PURCHASED_OPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000067","tested_point":"QST.IAS33.000067","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-purchased"},"references":["IAS 33 §62"],"exercise":{"prompt":{"fr":"","en":"Dorian SA has bought call options and put options on its own shares, in the money at the reporting date. How do these purchased options enter the calculation of diluted earnings per share?","es":""},"explanation":{"fr":"","en":"Call and put options purchased by the entity on its own shares are not included in diluted earnings, because including them would be antidilutive when they are in the money (IAS 33, para. 62). Trap: applying to them the treasury stock method provided for options issued. Rule to remember: Purchased options in the money are excluded from diluted earnings (IAS 33).","es":""},"common_error":{"fr":"","en":"Including in the diluted denominator a call option on its own shares held by the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are included under the treasury stock method, like options issued by the entity in the denominator calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Options purchased by the entity on its own shares are excluded from diluted earnings; the treasury stock method applies to options issued (IAS 33). Rule to remember: Purchased options are not included in diluted earnings (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"They are deducted from the weighted average number of shares in the diluted denominator.","es":""},"correct":false,"feedback":{"fr":"","en":"Purchased options do not change the diluted denominator: their inclusion would be antidilutive and they are excluded (IAS 33). Rule to remember: They do not appear in the calculation of diluted earnings (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"They adjust the numerator by the price paid to acquire them, spread over the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The text provides for their exclusion from diluted earnings, with no numerator adjustment for the price paid (IAS 33). Rule to remember: Purchased options, in the money, are excluded because they are antidilutive (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"They are not included, because including them would be antidilutive when they are in the money.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000068","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.WRITTEN_PUTS"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000068","tested_point":"QST.IAS33.000068","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-puts"},"references":["IAS 33 §63"],"exercise":{"prompt":{"fr":"","en":"During the year, Marly SA issued {number_of_puts} put options on its own shares, each obliging it to buy back one share at an exercise price of {exercise_price} (in euros). The average market price for the year is {average_price}, below the exercise price, and the options are outstanding all year. Calculate the repurchase obligation, the number of shares assumed issued at the average price to finance it, then the incremental shares for diluted earnings.","es":""},"explanation":{"fr":"","en":"Approach: obligation 120,000 x 40 = 4,800,000; shares issued at the average price 4,800,000 / 32 = 150,000; incremental shares 150,000 − 120,000 = 30,000. When the exercise price exceeds the average market price, written put options are taken into account by assuming an issue of shares at the average price at the start of the period to finance the repurchase obligation (IAS 33, para. 63). Trap: adding the 150,000 shares without deducting those bought back. Rule to remember: Only the shares issued in excess of those bought back are added to the denominator (IAS 33).","es":""},"common_error":{"fr":"","en":"Adding all the shares of the repurchase obligation without deducting those bought back.","es":""},"format":"CALCULATION","placeholders":[{"id":"number_of_puts","value":"120000","unit":"UNITS"},{"id":"exercise_price","value":"40","unit":"EUR"},{"id":"average_price","value":"32","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Put options issued","es":""},"value":"120000","unit":"UNITS"},{"label":{"fr":"","en":"Exercise price","es":""},"value":"40","unit":"EUR"},{"label":{"fr":"","en":"Average market price for the period","es":""},"value":"32","unit":"EUR"}],"steps":[{"id":"REPURCHASE_OBLIGATION","label":{"fr":"","en":"Repurchase obligation","es":""},"answer":4800000,"tolerance":0,"unit":"EUR"},{"id":"SHARES_ASSUMED_ISSUED","label":{"fr":"","en":"Shares assumed issued at the average price","es":""},"answer":150000,"tolerance":0,"unit":"UNITS"},{"id":"INCREMENTAL_SHARES","label":{"fr":"","en":"Incremental shares for diluted earnings","es":""},"answer":30000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"REPURCHASE_OBLIGATION","meaning":{"fr":"","en":"Repurchase obligation","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Put options issued","es":""},"value":120000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Exercise price","es":""},"value":40,"unit":"EUR"}],"result":4800000,"unit":"EUR"},{"step":"SHARES_ASSUMED_ISSUED","meaning":{"fr":"","en":"Shares assumed issued at the average price","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Repurchase obligation","es":""},"value":4800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Average market price for the period","es":""},"value":32,"unit":"EUR"}],"result":150000,"unit":"UNITS"},{"step":"INCREMENTAL_SHARES","meaning":{"fr":"","en":"Incremental shares for diluted earnings","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares assumed issued at the average price","es":""},"value":150000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Put options issued","es":""},"value":120000,"unit":"UNITS"}],"result":30000,"unit":"UNITS"}],"rationale":{"fr":"","en":"Only the shares issued in excess of those bought back are added to the denominator (IAS 33).","es":""},"references":["REF.IAS33.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000069","standard_id":"IAS33","concept_ids":["IAS33.DILUTED.EMPLOYEE_OPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000069","tested_point":"QST.IAS33.000069","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-employee"},"references":["IAS 33 §47A"],"exercise":{"prompt":{"fr":"","en":"Fontenay SA has granted share options to its employees, accounted for under IFRS 2. What does the assumed proceeds of exercise of these options comprise in the treasury stock method for diluted earnings?","es":""},"explanation":{"fr":"","en":"For employee share options under IFRS 2, the assumed proceeds of exercise comprise, in addition to the exercise price, the fair value of the goods or services still to be received (IAS 33, para. 47A). Higher assumed proceeds reduce the incremental shares of the treasury stock method accordingly. Trap: retaining the exercise price alone. Rule to remember: The assumed proceeds of employee options include the fair value of services still to be received (IAS 33).","es":""},"common_error":{"fr":"","en":"Ignoring the fair value of services still to be received in the assumed proceeds of exercise.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exercise price, with no other component, as for an option issued to a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"For employee options under IFRS 2, the assumed proceeds also comprise the fair value of the goods or services still to be received (IAS 33). Rule to remember: The exercise price is not enough by itself for these options (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"The exercise price and the remuneration expense already recognised at the reporting date, as it appears in the accounts for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"What is added to the exercise price is the fair value of the goods or services still to be received, not services already received and expensed (IAS 33). Rule to remember: The assumed proceeds include services still to be received (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"The exercise price and the fair value of the goods or services still to be received under the options.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value of the options at the grant date, which replaces the exercise price.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of the services still to be received is added to the exercise price and does not replace it (IAS 33). Rule to remember: The exercise price remains a component of the assumed proceeds (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000070","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000070","tested_point":"QST.IAS33.000070","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-face"},"references":["IAS 33 §66"],"exercise":{"prompt":{"fr":"","en":"The ordinary shares of Orsay SA are traded in a public market. Where and how does the entity present basic and diluted earnings per share?","es":""},"explanation":{"fr":"","en":"An entity whose securities are publicly traded presents, on the face of the statement of profit or loss, basic and diluted earnings per share for profit from continuing operations and for total profit attributable to the ordinary equity holders of the parent, with equal prominence for all periods presented (IAS 33, para. 66). Trap: relegating earnings per share to the notes or omitting continuing operations. Rule to remember: Earnings per share appears on the face of the statement of profit or loss, for all periods presented (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Presenting only basic earnings or not presenting diluted earnings on the face of the statement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the face of the statement of profit or loss, for continuing operations and total profit, with equal prominence for the periods presented.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the notes, the face of the statement of profit or loss being reserved for the entity's profit subtotals.","es":""},"correct":false,"feedback":{"fr":"","en":"The text places basic and diluted earnings per share on the face of the statement of profit or loss, not in the notes (IAS 33, para. 66). Rule to remember: The presentation is made on the face of the statement of profit or loss (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"On the face of the statement of profit or loss, for total profit, with no separate figure for continuing operations.","es":""},"correct":false,"feedback":{"fr":"","en":"The presentation covers the profit from continuing operations attributable to ordinary equity holders and total profit attributable to those holders (IAS 33, para. 66). Rule to remember: Both figures appear on the face of the statement (IAS 33, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"On the face of the statement of profit or loss for the current year, the comparative periods being referred to the notes, in order to lighten the presentation of comparatives.","es":""},"correct":false,"feedback":{"fr":"","en":"Earnings per share is presented with equal prominence for all periods presented, comparatives included (IAS 33, para. 66). Rule to remember: Comparative periods follow the same presentation as the current year (IAS 33, para. 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000071","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.FACE"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000071","tested_point":"QST.IAS33.000071","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-face"},"references":["IAS 33 §66","IAS 33 §69"],"exercise":{"prompt":{"fr":"","en":"Séquoia SA presents the components of its profit in a separate income statement, followed by a statement of comprehensive income. The year ends with a loss attributable to ordinary equity holders. How does the entity present earnings per share?","es":""},"explanation":{"fr":"","en":"Basic and diluted earnings per share is presented even when the amounts are negative, that is, as a loss per share (IAS 33, para. 69). If the components of profit are in a separate statement, earnings per share is presented only in that statement (IAS 33). Séquoia therefore presents a basic and diluted loss per share in its separate income statement. Trap: giving up presenting earnings per share in case of a loss, or placing it in another statement. Rule to remember: A loss per share is presented, basic and diluted, in the statement of the components of profit (IAS 33, para. 69).","es":""},"common_error":{"fr":"","en":"Not presenting any earnings per share in case of a loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No earnings per share is presented, a loss not giving rise to a meaningful calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Basic and diluted earnings per share is presented even when the amounts are negative, as a loss per share (IAS 33, para. 69). Rule to remember: A loss per share is presented as earnings per share (IAS 33, para. 69).","es":""}},{"id":"B","text":{"fr":"","en":"A loss per share is presented in the statement of comprehensive income, which completes the separate income statement.","es":""},"correct":false,"feedback":{"fr":"","en":"When the components of profit are in a separate statement, earnings per share is presented in that separate statement only (IAS 33). Rule to remember: Earnings per share follows the statement that presents the components of profit, here the separate income statement (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"A basic and diluted loss per share is presented in the separate income statement that presents the components of profit.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A basic loss per share is presented in the separate income statement, diluted earnings not being calculated for a loss for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Basic and diluted earnings per share is presented even when the amounts are negative (IAS 33, para. 69). Rule to remember: Both figures appear, including for a loss (IAS 33, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000072","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.DISCONTINUED"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000072","tested_point":"QST.IAS33.000072","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-discontinued"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"For the year, Ségur SA has a profit from continuing operations attributable to ordinary equity holders of {continuing_earnings} (in euros) and a post-tax loss of {discontinued_loss} relating to a discontinued operation. The weighted average number of ordinary shares is {weighted_shares}; there is no dilutive instrument. Calculate basic earnings per share of the discontinued operation (negative in case of a loss), then basic earnings per share of total profit. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: discontinued operation −480,000 / 3,000,000 = −0.16; total (3,300,000 − 480,000) / 3,000,000 = 0.94. For a discontinued operation, basic earnings per share is shown on the face of the statement of profit or loss or in the notes (IAS 33, para. 68); profit from continuing operations remains the control number for dilution (IAS 33). The basic denominator is the same for the three amounts (IAS 33, para. 10), which gives 1.10 for continuing operations (1.10 − 0.16 = 0.94). Trap: omitting the negative sign. Rule to remember: Earnings per share of a discontinued operation is shown on the face of the statement or in the notes, loss included (IAS 33, para. 68).","es":""},"common_error":{"fr":"","en":"Calculating earnings per share of discontinued operations with a denominator different from that of total profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"continuing_earnings","value":"3300000","unit":"EUR"},{"id":"discontinued_loss","value":"480000","unit":"EUR"},{"id":"weighted_shares","value":"3000000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":"3300000","unit":"EUR"},{"label":{"fr":"","en":"Post-tax loss of the discontinued operation","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"3000000","unit":"UNITS"}],"steps":[{"id":"DISCONTINUED_EPS","label":{"fr":"","en":"Basic earnings per share of the discontinued operation","es":""},"answer":-0.16,"tolerance":0,"unit":"EUR"},{"id":"BASIC_EPS_TOTAL","label":{"fr":"","en":"Basic earnings per share of total profit","es":""},"answer":0.94,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DISCONTINUED_EPS","meaning":{"fr":"","en":"Basic earnings per share of the discontinued operation","es":""},"expression":"-a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Post-tax loss of the discontinued operation","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"}],"result":-0.16,"unit":"EUR"},{"step":"BASIC_EPS_TOTAL","meaning":{"fr":"","en":"Basic earnings per share of total profit","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-tax loss of the discontinued operation","es":""},"value":480000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"}],"result":0.94,"unit":"EUR"}],"rationale":{"fr":"","en":"Earnings per share of a discontinued operation is shown on the face of the statement or in the notes, loss included (IAS 33, para. 68).","es":""},"references":["REF.IAS33.68"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000073","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.DISCONTINUED"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000073","tested_point":"QST.IAS33.000073","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-discontinued"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"Delphes SA achieved a profit from continuing operations of {continuing_earnings} (in euros) attributable to ordinary equity holders and a post-tax profit of {discontinued_profit} on a discontinued operation; the weighted average number of shares is {weighted_shares}. A convertible bond existing all year would remove {after_tax_interest} of interest after tax against {conversion_shares} conversion shares, and the dilution test relates to continuing operations. Establish diluted earnings per share of the discontinued operation, then of total profit. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: incremental 180,000 / 300,000 = 0.60, below basic earnings from continuing operations (1.50): the bond is dilutive and retained (IAS 33). Diluted denominator 3,000,000 + 300,000 = 3,300,000; discontinued operation 600,000 / 3,300,000 = 0.18; total (4,500,000 + 600,000 + 180,000) / 3,300,000 = 1.60 (1.42 for continuing operations). Earnings per share of the discontinued operation is shown on the face of the statement or in the notes (IAS 33, para. 68). Once the bond is judged dilutive against the control number, it is included in the diluted denominator of the three amounts (IAS 33, paras. 41 and 42). Trap: calculating the discontinued operation on the basic number of shares. Rule to remember: The denominator retained for continuing operations also serves the other amounts (IAS 33, paras. 41 and 42).","es":""},"common_error":{"fr":"","en":"Calculating earnings per share of discontinued operations with a denominator different from that of total profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"continuing_earnings","value":"4500000","unit":"EUR"},{"id":"discontinued_profit","value":"600000","unit":"EUR"},{"id":"weighted_shares","value":"3000000","unit":"UNITS"},{"id":"after_tax_interest","value":"180000","unit":"EUR"},{"id":"conversion_shares","value":"300000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":"4500000","unit":"EUR"},{"label":{"fr":"","en":"Post-tax profit of the discontinued operation","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":"3000000","unit":"UNITS"},{"label":{"fr":"","en":"Interest on the bond after tax","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued on conversion","es":""},"value":"300000","unit":"UNITS"}],"steps":[{"id":"DILUTED_EPS_DISCONTINUED","label":{"fr":"","en":"Diluted earnings per share of the discontinued operation","es":""},"answer":0.18,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_EPS_TOTAL","label":{"fr":"","en":"Diluted earnings per share of total profit","es":""},"answer":1.6,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_EPS_DISCONTINUED","meaning":{"fr":"","en":"Diluted earnings per share of the discontinued operation","es":""},"expression":"a / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Post-tax profit of the discontinued operation","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":300000,"unit":"UNITS"}],"result":0.18,"unit":"EUR"},{"step":"DILUTED_EPS_TOTAL","meaning":{"fr":"","en":"Diluted earnings per share of total profit","es":""},"expression":"(a + b + c) / (d + e)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit from continuing operations attributable to ordinary equity holders","es":""},"value":4500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-tax profit of the discontinued operation","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest on the bond after tax","es":""},"value":180000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Weighted average number of ordinary shares","es":""},"value":3000000,"unit":"UNITS"},{"symbol":"e","meaning":{"fr":"","en":"Shares issued on conversion","es":""},"value":300000,"unit":"UNITS"}],"result":1.6,"unit":"EUR"}],"rationale":{"fr":"","en":"The denominator retained for continuing operations also serves the other amounts (IAS 33, paras. 41 and 42).","es":""},"references":["REF.IAS33.68"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000074","standard_id":"IAS33","concept_ids":["IAS33.PRESENTATION.DISCONTINUED"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000074","tested_point":"QST.IAS33.000074","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-discontinued"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"In Anjou SA's note on earnings per share and discontinued operations, which sentence is incorrect?","es":""},"explanation":{"fr":"","en":"Profit from continuing operations attributable to the parent serves as the control number for establishing whether potential shares are dilutive or antidilutive; a loss from discontinued operations can make total profit antidilutive while continuing operations remain dilutive (IAS 33). Earnings per share of a discontinued operation is shown on the face of the statement or in the notes (IAS 33, para. 68). The sentence making discontinued operations the control number is therefore incorrect. Trap: shifting the dilution test to discontinued operations. Rule to remember: The control number for dilution is the profit from continuing operations (IAS 33).","es":""},"common_error":{"fr":"","en":"Including an instrument according to the result of discontinued operations instead of continuing operations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Earnings per share of a discontinued operation is shown either on the face of the statement of profit or loss or in the notes, at the entity's choice.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: basic and diluted earnings per share of a discontinued operation is shown on the face of the statement or in the notes (IAS 33, para. 68). Rule to remember: The disclosure may appear on the face or in the notes (IAS 33, para. 68).","es":""}},{"id":"B","text":{"fr":"","en":"The result of discontinued operations serves as the control number for establishing whether potential shares are dilutive or antidilutive.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A loss from discontinued operations can make total profit antidilutive while continuing operations remain dilutive.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the test relates to continuing operations, so a loss from discontinued operations can make the total antidilutive without altering the test (IAS 33). Rule to remember: The dilution test is assessed on continuing operations (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"Basic and diluted earnings per share is shown for the discontinued operation, as for continuing operations.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: basic and diluted earnings per share of a discontinued operation is shown (IAS 33, para. 68). Rule to remember: Both earnings per share figures are concerned (IAS 33, para. 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000075","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_QST.IAS33.000075","tested_point":"QST.IAS33.000075","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"In the earnings per share note of Coteaux SA, the basic weighted average number of shares is {basic_shares}. The individual effects of the categories of dilutive instruments on the denominator are: options (treasury stock method) {options_effect}; convertible bonds {convertible_effect}; contingent shares {contingent_effect}. Calculate the number of shares in the denominator of diluted earnings, as it emerges from the reconciliation of denominators.","es":""},"explanation":{"fr":"","en":"Approach: 6,000,000 + 300,000 + 900,000 + 120,000 = 7,320,000. The reconciliation of denominators links the basic weighted average number to the diluted number by showing the individual effect of each category of instruments (IAS 33, para. 70). Trap: presenting the total without the effect of each category. Rule to remember: The reconciliation shows the individual effect of each category of instruments on the denominator (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Presenting diluted earnings without a reconciliation or the effect of each category of instruments.","es":""},"format":"CALCULATION","placeholders":[{"id":"basic_shares","value":"6000000","unit":"UNITS"},{"id":"options_effect","value":"300000","unit":"UNITS"},{"id":"convertible_effect","value":"900000","unit":"UNITS"},{"id":"contingent_effect","value":"120000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":"6000000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the options","es":""},"value":"300000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the convertible bonds","es":""},"value":"900000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the contingent shares","es":""},"value":"120000","unit":"UNITS"}],"steps":[{"id":"DILUTED_SHARES","label":{"fr":"","en":"Number of shares for diluted earnings","es":""},"answer":7320000,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Number of shares for diluted earnings","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":6000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Effect of the options","es":""},"value":300000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Effect of the convertible bonds","es":""},"value":900000,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Effect of the contingent shares","es":""},"value":120000,"unit":"UNITS"}],"result":7320000,"unit":"UNITS"}],"rationale":{"fr":"","en":"The reconciliation shows the individual effect of each category of instruments on the denominator (IAS 33, para. 70).","es":""},"references":["REF.IAS33.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000076","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000006","tested_point":"VG.IAS33.000006","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"To prepare the reconciliation required in the earnings per share note, Hautes-Terres SA has the following data (in euros): profit attributable to the parent before preference dividends {profit_parent}; preference dividends after tax {pref_dividends}; interest on a dilutive convertible bond, removed after tax, {after_tax_interest}; basic weighted average number of shares {basic_shares}; effect of the options {options_effect}; effect of the convertible bond {convertible_effect}. Calculate the diluted numerator, the diluted denominator and diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: numerator (7,200,000 − 600,000) + 240,000 = 6,840,000; denominator 6,000,000 + 450,000 + 750,000 = 7,200,000; 6,840,000 / 7,200,000 = 0.95. The reconciliation covers the numerators, reconciled to the profit attributable to the parent, and the denominators, with the individual effect of each category of instruments (IAS 33, para. 70). Trap: forgetting to deduct the preference dividends or presenting the effects in a single block. Rule to remember: Basic and diluted numerators and denominators are reconciled category by category (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Presenting diluted earnings without a reconciliation or the effect of each category of instruments.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"7200000","unit":"EUR"},{"id":"pref_dividends","value":"600000","unit":"EUR"},{"id":"after_tax_interest","value":"240000","unit":"EUR"},{"id":"basic_shares","value":"6000000","unit":"UNITS"},{"id":"options_effect","value":"450000","unit":"UNITS"},{"id":"convertible_effect","value":"750000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"7200000","unit":"EUR"},{"label":{"fr":"","en":"Preference dividends after tax","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":"6000000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the options","es":""},"value":"450000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the convertible bond","es":""},"value":"750000","unit":"UNITS"}],"steps":[{"id":"DILUTED_NUMERATOR","label":{"fr":"","en":"Numerator of diluted earnings","es":""},"answer":6840000,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_SHARES","label":{"fr":"","en":"Denominator of diluted earnings","es":""},"answer":7200000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":0.95,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_NUMERATOR","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":7200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividends after tax","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":240000,"unit":"EUR"}],"result":6840000,"unit":"EUR"},{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Denominator of diluted earnings","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":6000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Effect of the options","es":""},"value":450000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Effect of the convertible bond","es":""},"value":750000,"unit":"UNITS"}],"result":7200000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"value":6840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":7200000,"unit":"EUR"}],"result":0.95,"unit":"EUR"}],"rationale":{"fr":"","en":"Basic and diluted numerators and denominators are reconciled category by category (IAS 33, para. 70).","es":""},"references":["REF.IAS33.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000077","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS33.000006","tested_point":"VG.IAS33.000006","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-reconciliation"},"references":["IAS 33 §70"],"exercise":{"prompt":{"fr":"","en":"The accounting department of Vignoble SA prepares the earnings per share reconciliation table (in euros): profit attributable to the parent before preference dividends {profit_parent}, of which {pref_dividends} of preference dividends after tax are to be deducted; a dilutive convertible bond whose interest after tax of {after_tax_interest} would disappear on conversion; a basic weighted average number of shares of {basic_shares}, to which are added {options_effect} shares for the options and {convertible_effect} for the bond. Establish the diluted numerator, the diluted denominator and diluted earnings per share. Round earnings per share to two decimals (case convention).","es":""},"explanation":{"fr":"","en":"Approach: numerator (3,900,000 − 300,000) + 120,000 = 3,720,000; denominator 2,800,000 + 100,000 + 200,000 = 3,100,000; 3,720,000 / 3,100,000 = 1.20. The reconciliation links the numerators to the profit attributable to the parent and the denominators to each other, with the individual effect of each category of instruments (IAS 33, para. 70). Trap: moving from basic to diluted earnings without detailing the effect of each class of instrument. Rule to remember: The reconciliation shows each step from basic to diluted earnings (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Presenting diluted earnings without a reconciliation or the effect of each category of instruments.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_parent","value":"3900000","unit":"EUR"},{"id":"pref_dividends","value":"300000","unit":"EUR"},{"id":"after_tax_interest","value":"120000","unit":"EUR"},{"id":"basic_shares","value":"2800000","unit":"UNITS"},{"id":"options_effect","value":"100000","unit":"UNITS"},{"id":"convertible_effect","value":"200000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":"3900000","unit":"EUR"},{"label":{"fr":"","en":"Preference dividends after tax","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":"2800000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the options","es":""},"value":"100000","unit":"UNITS"},{"label":{"fr":"","en":"Effect of the convertible bond","es":""},"value":"200000","unit":"UNITS"}],"steps":[{"id":"DILUTED_NUMERATOR","label":{"fr":"","en":"Numerator of diluted earnings","es":""},"answer":3720000,"tolerance":0,"unit":"EUR"},{"id":"DILUTED_SHARES","label":{"fr":"","en":"Denominator of diluted earnings","es":""},"answer":3100000,"tolerance":0,"unit":"UNITS"},{"id":"DILUTED_EPS","label":{"fr":"","en":"Diluted earnings per share","es":""},"answer":1.2,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DILUTED_NUMERATOR","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to the parent before preference dividends","es":""},"value":3900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Preference dividends after tax","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest on the bond removed, after tax","es":""},"value":120000,"unit":"EUR"}],"result":3720000,"unit":"EUR"},{"step":"DILUTED_SHARES","meaning":{"fr":"","en":"Denominator of diluted earnings","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Basic weighted average number of shares","es":""},"value":2800000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Effect of the options","es":""},"value":100000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Effect of the convertible bond","es":""},"value":200000,"unit":"UNITS"}],"result":3100000,"unit":"UNITS"},{"step":"DILUTED_EPS","meaning":{"fr":"","en":"Diluted earnings per share","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Numerator of diluted earnings","es":""},"value":3720000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Denominator of diluted earnings","es":""},"value":3100000,"unit":"UNITS"}],"result":1.2,"unit":"EUR"}],"rationale":{"fr":"","en":"The reconciliation shows each step from basic to diluted earnings (IAS 33, para. 70).","es":""},"references":["REF.IAS33.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000078","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.ANTIDILUTIVE_SUBSEQUENT"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000078","tested_point":"QST.IAS33.000078","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-antidilutive"},"references":["IAS 33"],"exercise":{"prompt":{"fr":"","en":"Cervin SA has options that are antidilutive for the year, and therefore excluded from the calculation of diluted earnings. After the reporting date and before authorisation for issue, it bought back a significant part of its ordinary shares. What additional information about the instruments and the transactions does it provide?","es":""},"explanation":{"fr":"","en":"The additional disclosures cover the instruments excluded from the diluted calculation because they are antidilutive for the period presented and a description of the transactions in ordinary or potential shares after the reporting date that would significantly have changed the number of shares (IAS 33, para. 70). Cervin therefore provides both items. Trap: omitting antidilutive instruments and post-reporting-date transactions. Rule to remember: Excluded antidilutive instruments and significant later transactions are the subject of disclosure (IAS 33, para. 70).","es":""},"common_error":{"fr":"","en":"Omitting antidilutive instruments and post-reporting-date transactions from the disclosures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No additional information, since the options excluded from the calculation have no effect on the earnings per share presented, since the diluted calculation does not retain them in the denominator.","es":""},"correct":false,"feedback":{"fr":"","en":"The text calls for information on instruments excluded from the diluted calculation because they are antidilutive (IAS 33, para. 70). Rule to remember: An instrument excluded from the calculation is the subject of disclosure (IAS 33, para. 70).","es":""}},{"id":"B","text":{"fr":"","en":"A description of the transaction after the reporting date, the antidilutive options not being mentioned since they are excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"The instruments excluded because they are antidilutive for the period presented are also to be mentioned (IAS 33, para. 70). Rule to remember: The disclosure covers both the excluded instruments and the later transactions (IAS 33, para. 70).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of the antidilutive effect of the options, without a description of the transaction after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Share transactions after the reporting date that would significantly have changed the number of shares are the subject of a description (IAS 33, para. 70). Rule to remember: The disclosure includes the transaction after the reporting date (IAS 33, para. 70).","es":""}},{"id":"D","text":{"fr":"","en":"The antidilutive instruments excluded from the calculation, and a description of the post-reporting-date transaction that would significantly change the number of shares.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000079","standard_id":"IAS33","concept_ids":["IAS33.DISCLOSURE.OTHER_PER_SHARE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000079","tested_point":"QST.IAS33.000079","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-other"},"references":["IAS 33 §73"],"exercise":{"prompt":{"fr":"","en":"When an entity discloses, in addition to basic and diluted earnings per share, per-share amounts based on another reported component of profit, IAS 33 also applies to those amounts.","es":""},"explanation":{"fr":"","en":"When an entity discloses, in addition to basic and diluted earnings per share, per-share amounts based on another reported component of profit, the standard also applies to those amounts (IAS 33, para. 73); with IFRS 18 (a future requirement, 1 January 2027), those amounts remain governed but their numerator is restricted. Trap: calculating such an amount with a different number of shares from that of earnings per share. Rule to remember: An additional per-share amount remains within the scope of the standard (IAS 33).","es":""},"common_error":{"fr":"","en":"Calculating an additional per-share amount with a different number of shares.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000080","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS32"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000080","tested_point":"QST.IAS33.000080","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000012","section_id":"rule-ias32"},"references":["IAS 33 §13"],"exercise":{"prompt":{"fr":"","en":"Sorbier SA has issued preference shares that IAS 32 classifies as a financial liability; their dividends for the year, 120,000, are recognised as an expense. How do these dividends enter the numerator of basic earnings per share?","es":""},"explanation":{"fr":"","en":"All income and expenses recognised in the period, including tax expense and dividends on preference shares classified as liabilities, are included in profit for the period (IAS 33, para. 13). The dividends of 120,000 are therefore already in the profit attributable to the parent; there is no need to deduct them a second time. Approach: the numerator deduction targets preference shares classified as equity (IAS 33, para. 12). Trap: counting the dividend twice. Rule to remember: Dividends on shares classified as liabilities are in profit for the period (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating as equity a preference share classified as a liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are deducted a second time from the profit attributable to the parent, as preference dividends, in addition to their recognition as an expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Dividends on preference shares classified as liabilities are already included in profit for the period (IAS 33); deducting them again would count the same expense twice. The deduction of preference dividends only concerns shares classified as equity (IAS 33, para. 12). Rule to remember: A dividend already expensed is not deducted a second time: the numerator starts from profit for the period (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"They are already included in profit for the period, so the numerator is not adjusted a second time on that account.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are added back to the profit attributable to the parent, because they do not reward ordinary shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"The text includes these dividends in profit for the period as an expense (IAS 33); adding them back does not match that treatment. Rule to remember: The dividend on a share classified as a liability is an expense of the period's profit (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"They are ignored, the numerator being the profit before the finance costs for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The numerator starts from profit for the period, which includes the income and expenses recognised, these dividends among them (IAS 33). Rule to remember: Finance costs, dividends on liabilities included, stay in profit (IAS 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000081","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IFRS2"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000081","tested_point":"QST.IAS33.000081","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000009","section_id":"rule-employee"},"references":["IAS 33 §47A"],"exercise":{"prompt":{"fr":"","en":"Share options granted to employees and accounted for under IFRS 2 are excluded from the calculation of diluted earnings per share merely because they fall under IFRS 2.","es":""},"explanation":{"fr":"","en":"The text deals with employee share options (IFRS 2) in the diluted calculation: the assumed proceeds of exercise comprise, in addition to the exercise price, the fair value of the goods or services still to be received (IAS 33, para. 47A). They are therefore not set aside merely because of their accounting regime. Trap: excluding employee options from diluted earnings. Rule to remember: Employee options under IFRS 2 are part of the diluted calculation (IAS 33).","es":""},"common_error":{"fr":"","en":"Excluding employee options from diluted earnings.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000082","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IFRS5"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000082","tested_point":"QST.IAS33.000082","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-ifrs5"},"references":["IAS 33 §68"],"exercise":{"prompt":{"fr":"","en":"Avenir SA, whose shares are publicly traded, classifies its Transport division as a discontinued operation under IFRS 5. What per-share information must it give for this division?","es":""},"explanation":{"fr":"","en":"For a discontinued operation, basic and diluted earnings per share is shown either on the face of the statement of profit or loss (or of the separate statement) or in the notes (IAS 33, para. 68). The notion of discontinued operation comes from IFRS 5, but the place of the per-share information is set by IAS 33. Trap: believing the information must be on the face of the statement, or that it is not due. Rule to remember: Earnings per share of a discontinued operation is shown on the face of the statement or in the notes (IAS 33, para. 68).","es":""},"common_error":{"fr":"","en":"Presenting the earnings per share of a continuing operation as that of a discontinued operation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Basic and diluted earnings per share of the discontinued operation, on the face of the statement of profit or loss or in the notes.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No earnings per share, the IFRS 5 classification relieving the discontinued operation of this disclosure, as the operation is presented as discontinued.","es":""},"correct":false,"feedback":{"fr":"","en":"The text calls for basic and diluted earnings per share of a discontinued operation to be shown (IAS 33, para. 68). Rule to remember: A discontinued operation gives rise to per-share information (IAS 33, para. 68).","es":""}},{"id":"C","text":{"fr":"","en":"Basic earnings of the discontinued operation, on the face of the statement of profit or loss, without diluted earnings.","es":""},"correct":false,"feedback":{"fr":"","en":"Both basic and diluted earnings per share are shown for the discontinued operation (IAS 33, para. 68). Rule to remember: The disclosure covers both earnings per share figures (IAS 33, para. 68).","es":""}},{"id":"D","text":{"fr":"","en":"Basic and diluted earnings per share, to be presented on the face of the statement of profit or loss and not in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The text leaves the choice between the face of the statement of profit or loss and the notes (IAS 33, para. 68). Rule to remember: The face of the statement is not the imposed place: the notes are allowed too (IAS 33, para. 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000083","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS1_IFRS18"],"dimension":"ANALYSIS","context":"V1_QST.IAS33.000083","tested_point":"QST.IAS33.000083","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000011","section_id":"rule-ias1"},"references":["IAS 33 §66"],"exercise":{"prompt":{"fr":"","en":"In its note on the presentation of earnings per share, which sentence of Lusignan SA is incorrect?","es":""},"explanation":{"fr":"","en":"An entity whose securities are publicly traded presents, on the face of the statement of profit or loss (or of the separate statement of the components of profit), basic and diluted earnings per share for each class of ordinary shares with different rights to profit, with equal prominence for all periods presented (IAS 33, para. 66). The sentence providing for a single figure for classes with different rights is therefore incorrect. Trap: aggregating classes of shares with different rights. Rule to remember: Earnings per share is presented by class of ordinary shares with different rights (IAS 33, para. 66).","es":""},"common_error":{"fr":"","en":"Presenting earnings per share in a statement other than the one presenting the components of profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity presents a single earnings per share figure for all of its ordinary shares, even if some classes carry different rights to profit.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Basic and diluted earnings per share appears on the face of the statement of profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: this is the place provided for basic and diluted earnings per share (IAS 33, para. 66). Rule to remember: Earnings per share appears on the face of the statement of profit or loss (IAS 33, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"The periods presented are given equal prominence in this presentation.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: earnings per share is presented with equal prominence for all periods presented (IAS 33, para. 66). Rule to remember: Comparative periods carry the same prominence as the current period (IAS 33, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"If the components of profit are in a separate statement, earnings per share is presented in that separate statement, in accordance with the place provided for earnings per share.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: in that case, earnings per share is presented only in the separate statement (IAS 33). Rule to remember: Earnings per share follows the statement that presents the components of profit (IAS 33, para. 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000084","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS8_IAS10"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS33.000084","tested_point":"QST.IAS33.000084","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000006","section_id":"rule-ias8"},"references":["IAS 33 §64"],"exercise":{"prompt":{"fr":"","en":"A share split decided after the reporting date but before the financial statements are authorised for issue has no effect on the earnings per share of the period ended.","es":""},"explanation":{"fr":"","en":"If the number of shares increases through a split after the reporting date but before authorisation for issue, the calculations for the period and prior periods presented rest on the new number of shares, and the fact is disclosed (IAS 33, para. 64). The statement is therefore inaccurate. Trap: treating the event as foreign to earnings per share because it is after the reporting date. Rule to remember: A split after the reporting date but before authorisation is reflected in the earnings per share presented (IAS 33, para. 64).","es":""},"common_error":{"fr":"","en":"Treating a change in the number of shares after the reporting date as an event with no effect on earnings per share.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS33.000085","standard_id":"IAS33","concept_ids":["IAS33.INTERACTIONS.IAS12"],"dimension":"APPLICATION","context":"V1_QST.IAS33.000085","tested_point":"QST.IAS33.000085","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS33","lesson_id":"LS.IAS33.000008","section_id":"rule-tax"},"references":["IAS 33 §33"],"exercise":{"prompt":{"fr":"","en":"The interest expense of the dilutive convertible bond of Jarnac SA is 100,000 for the year. This expense is deductible at a rate of 30% (case datum). What amount is added to the diluted numerator on account of this bond?","es":""},"explanation":{"fr":"","en":"Basic earnings is adjusted for the after-tax effects of interest that would no longer be incurred if the dilutive potential shares were converted (IAS 33, para. 33). The 30% rate is a case datum: 100,000 x (1 − 30%) = 70,000. Trap: adding the expense before tax, or adding only the tax. Rule to remember: The interest adjustment is calculated after the tax effect applied to the expense removed (IAS 33).","es":""},"common_error":{"fr":"","en":"Applying a tax rate different from that of the interest expense removed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"100,000, that is the interest expense before tax, ignoring the 30% rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment is the after-tax effect of the interest that would no longer be incurred, not its pre-tax amount (IAS 33). Rule to remember: Interest is added after tax (IAS 33).","es":""}},{"id":"B","text":{"fr":"","en":"130,000, that is the interest expense increased by the tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation reduces the expense by the tax effect instead of increasing it: the adjustment is after tax (IAS 33). Rule to remember: The tax effect is deducted from the expense (IAS 33).","es":""}},{"id":"C","text":{"fr":"","en":"30,000, that is the tax saving on the interest expense.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax saving is not the adjustment: the interest removed is added net of that saving (IAS 33). Rule to remember: The amount added is the interest expense after the tax effect (IAS 33).","es":""}},{"id":"D","text":{"fr":"","en":"70,000, that is the interest expense reduced by the tax saving of 30%.","es":""},"correct":true}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS33.000001":"IAS 33: purpose and scope — The rule: the objective of the standard","LX.IAS33.000002":"IAS 33: purpose and scope — The rule: the objective of the standard","LX.IAS33.000003":"IAS 33: purpose and scope — The rule: who must present earnings per share?","LX.IAS33.000004":"IAS 33: purpose and scope — Simple example: four fictitious entities","LX.IAS33.000005":"IAS 33: purpose and scope — The rule: who must present earnings per share?","LX.IAS33.000006":"IAS 33: purpose and scope — Going deeper: separate and consolidated statements","LX.IAS33.000007":"IAS 33: purpose and scope — Professional judgement: establishing the scope facts","LX.IAS33.000008":"Ordinary shares, potential ordinary shares and dilution — The rule: the ordinary share and the potential share","LX.IAS33.000009":"Ordinary shares, potential ordinary shares and dilution — The rule: the ordinary share and the potential share","LX.IAS33.000010":"Ordinary shares, potential ordinary shares and dilution — Simple example: Gamel SA's instruments","LX.IAS33.000011":"Ordinary shares, potential ordinary shares and dilution — The rule: dilution and antidilution","LX.IAS33.000012":"Ordinary shares, potential ordinary shares and dilution — The rule: the ordinary share and the potential share","LX.IAS33.000013":"Ordinary shares, potential ordinary shares and dilution — Points of attention","LX.IAS33.000014":"Ordinary shares, potential ordinary shares and dilution — Going deeper: ranking of shares and participating instruments","LX.IAS33.000015":"Ordinary shares, potential ordinary shares and dilution — Professional judgement: reading an instrument's clauses","LX.IAS33.000016":"Basic earnings per share: the formula and the numerator — Worked example: the Loriel group","LX.IAS33.000017":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","LX.IAS33.000018":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","LX.IAS33.000019":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","LX.IAS33.000020":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","LX.IAS33.000021":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","LX.IAS33.000022":"Basic earnings per share: the formula and the numerator — Worked example: the Loriel group","LX.IAS33.000023":"Basic earnings per share: the formula and the numerator — Points of attention","LX.IAS33.000024":"Preference dividends: cumulative and non-cumulative — The rule: cumulative or non-cumulative","LX.IAS33.000025":"Preference dividends: cumulative and non-cumulative — Worked example: Orlane Industries","LX.IAS33.000026":"Preference dividends: cumulative and non-cumulative — The rule: cumulative or non-cumulative","LX.IAS33.000027":"Preference dividends: cumulative and non-cumulative — The rule: deduct preference dividends after tax","LX.IAS33.000028":"Preference dividends: cumulative and non-cumulative — The rule: cumulative or non-cumulative","LX.IAS33.000029":"Preference dividends: cumulative and non-cumulative — Worked example: Orlane Industries","LX.IAS33.000030":"Preference dividends: cumulative and non-cumulative — Points of attention","LX.IAS33.000031":"Preference dividends: cumulative and non-cumulative — Going deeper: settlement differences and similar effects","LX.IAS33.000032":"Preference dividends: cumulative and non-cumulative — Going deeper: settlement differences and similar effects","LX.IAS33.000033":"Preference dividends: cumulative and non-cumulative — Professional judgement: when is a non-cumulative dividend \"declared\"?","LX.IAS33.000034":"The weighted average number of ordinary shares — Worked example: Pelvane SA","LX.IAS33.000035":"The weighted average number of ordinary shares — Worked example: Pelvane SA","LX.IAS33.000036":"The weighted average number of ordinary shares — The rule: from which date a share counts","LX.IAS33.000037":"The weighted average number of ordinary shares — Points of attention","LX.IAS33.000038":"The weighted average number of ordinary shares — The rule: from which date a share counts","LX.IAS33.000039":"The weighted average number of ordinary shares — Worked example: Pelvane SA","LX.IAS33.000040":"The weighted average number of ordinary shares — The rule: contingently issuable shares","LX.IAS33.000041":"The weighted average number of ordinary shares — Going deeper: mandatorily convertible instruments","LX.IAS33.000042":"The weighted average number of ordinary shares — Going deeper: partly paid shares","LX.IAS33.000043":"The weighted average number of ordinary shares — Professional judgement: weighting, dates and terms","LX.IAS33.000044":"Bonus issue, split, reverse split and retrospective adjustment — Worked example: Calvane SA","LX.IAS33.000045":"Bonus issue, split, reverse split and retrospective adjustment — Worked example: Calvane SA","LX.IAS33.000046":"Bonus issue, split, reverse split and retrospective adjustment — The rule: events without a change in resources","LX.IAS33.000047":"Bonus issue, split, reverse split and retrospective adjustment — The rule: events without a change in resources","LX.IAS33.000048":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","LX.IAS33.000049":"Bonus issue, split, reverse split and retrospective adjustment — The opposite case: the reverse share split","LX.IAS33.000050":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","LX.IAS33.000051":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: corrected errors and changes in policies","LX.IAS33.000052":"Bonus issue, split, reverse split and retrospective adjustment — Points of attention","LX.IAS33.000053":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: prior-period diluted earnings","LX.IAS33.000054":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: link with IAS 8 and IAS 10","LX.IAS33.000055":"A rights issue with a bonus element — The rule: theoretical price and adjustment factor","LX.IAS33.000056":"A rights issue with a bonus element — The rule: applying the factor to the periods concerned","LX.IAS33.000057":"A rights issue with a bonus element — Worked example: Ostrane SA","LX.IAS33.000058":"A rights issue with a bonus element — Understand: rights at a discount for existing shareholders","LX.IAS33.000059":"A rights issue with a bonus element — The rule: theoretical price and adjustment factor","LX.IAS33.000060":"A rights issue with a bonus element — The rule: theoretical price and adjustment factor","LX.IAS33.000061":"A rights issue with a bonus element — Worked example: Ostrane SA","LX.IAS33.000062":"A rights issue with a bonus element — Points of attention","LX.IAS33.000063":"A rights issue with a bonus element — The rule: applying the factor to the periods concerned","LX.IAS33.000064":"Diluted earnings: principle, numerator and convertible instruments — The rule: adjusting the numerator","LX.IAS33.000065":"Diluted earnings: principle, numerator and convertible instruments — Worked example: Tavane SA","LX.IAS33.000066":"Diluted earnings: principle, numerator and convertible instruments — Worked example: a convertible issued during the year","LX.IAS33.000067":"Diluted earnings: principle, numerator and convertible instruments — Understand: what if the convertible instruments became shares?","LX.IAS33.000068":"Diluted earnings: principle, numerator and convertible instruments — The rule: adjusting the numerator","LX.IAS33.000069":"Diluted earnings: principle, numerator and convertible instruments — The rule: the additional shares of a convertible","LX.IAS33.000070":"Diluted earnings: principle, numerator and convertible instruments — Points of attention","LX.IAS33.000071":"Diluted earnings: principle, numerator and convertible instruments — Worked example: Tavane SA","LX.IAS33.000072":"Diluted earnings: principle, numerator and convertible instruments — Going deeper: the tax effect in the adjustment (link with IAS 12)","LX.IAS33.000073":"Options and warrants: the treasury share method — Worked example: Zelvane SA","LX.IAS33.000074":"Options and warrants: the treasury share method — The rule: the treasury share method","LX.IAS33.000075":"Options and warrants: the treasury share method — The rule: when are options dilutive?","LX.IAS33.000076":"Options and warrants: the treasury share method — Worked example: Zelvane SA","LX.IAS33.000077":"Options and warrants: the treasury share method — The rule: the treasury share method","LX.IAS33.000078":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","LX.IAS33.000079":"Options and warrants: the treasury share method — Points of attention","LX.IAS33.000080":"Options and warrants: the treasury share method — Going deeper: options purchased by the entity","LX.IAS33.000081":"Options and warrants: the treasury share method — Going deeper: written put options","LX.IAS33.000082":"Options and warrants: the treasury share method — Going deeper: employee options and the link with IFRS 2","LX.IAS33.000083":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","LX.IAS33.000084":"The dilution test, the order of inclusion and contingent shares — The rule: the order of inclusion","LX.IAS33.000085":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","LX.IAS33.000086":"The dilution test, the order of inclusion and contingent shares — Worked example: three instruments","LX.IAS33.000087":"The dilution test, the order of inclusion and contingent shares — Worked example: the control number of continuing operations","LX.IAS33.000088":"The dilution test, the order of inclusion and contingent shares — Worked example: the control number of continuing operations","LX.IAS33.000089":"The dilution test, the order of inclusion and contingent shares — The rule: contingently issuable shares in diluted earnings","LX.IAS33.000090":"The dilution test, the order of inclusion and contingent shares — Going deeper: contracts settled in shares or cash","LX.IAS33.000091":"The dilution test, the order of inclusion and contingent shares — Going deeper: contracts settled in shares or cash","LX.IAS33.000092":"The dilution test, the order of inclusion and contingent shares — Professional judgement: conversion bases and settlement choice","LX.IAS33.000093":"Presenting earnings per share and discontinued operations — Worked example: continuing and discontinued operations","LX.IAS33.000094":"Presenting earnings per share and discontinued operations — The rule: present a loss per share too","LX.IAS33.000095":"Presenting earnings per share and discontinued operations — The rule: what appears on the face of the income statement","LX.IAS33.000096":"Presenting earnings per share and discontinued operations — The rule: earnings per share of discontinued operations","LX.IAS33.000097":"Presenting earnings per share and discontinued operations — Points of attention","LX.IAS33.000098":"Presenting earnings per share and discontinued operations — The rule: what appears on the face of the income statement","LX.IAS33.000099":"Presenting earnings per share and discontinued operations — Going deeper: the link with IFRS 5","LX.IAS33.000100":"Presenting earnings per share and discontinued operations — Going deeper: the income statement under IAS 1 and IFRS 18","LX.IAS33.000101":"Disclosure: reconciliations and other amounts per share — Worked example: Brennel SA's note","LX.IAS33.000102":"Disclosure: reconciliations and other amounts per share — The rule: reconciling numerators and denominators","LX.IAS33.000103":"Disclosure: reconciliations and other amounts per share — The rule: reconciling numerators and denominators","LX.IAS33.000104":"Disclosure: reconciliations and other amounts per share — Points of attention","LX.IAS33.000105":"Disclosure: reconciliations and other amounts per share — Going deeper: antidilutive instruments and subsequent transactions","LX.IAS33.000106":"Disclosure: reconciliations and other amounts per share — Going deeper: other amounts per share","LX.IAS33.000107":"Disclosure: reconciliations and other amounts per share — Going deeper: preference shares classified as liabilities (link with IAS 32)","LX.IAS33.000108":"Disclosure: reconciliations and other amounts per share — Professional judgement: building the note","QST.IAS33.000001":"IAS 33: purpose and scope — The rule: the objective of the standard","QST.IAS33.000002":"IAS 33: purpose and scope — The rule: the objective of the standard","QST.IAS33.000003":"IAS 33: purpose and scope — The rule: who must present earnings per share?","QST.IAS33.000004":"IAS 33: purpose and scope — The rule: who must present earnings per share?","QST.IAS33.000005":"IAS 33: purpose and scope — Going deeper: separate and consolidated statements","QST.IAS33.000006":"Ordinary shares, potential ordinary shares and dilution — The rule: the ordinary share and the potential share","QST.IAS33.000007":"Ordinary shares, potential ordinary shares and dilution — The rule: the ordinary share and the potential share","QST.IAS33.000008":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","QST.IAS33.000009":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","QST.IAS33.000010":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","QST.IAS33.000011":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","QST.IAS33.000012":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","QST.IAS33.000013":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","QST.IAS33.000014":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","QST.IAS33.000015":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","QST.IAS33.000016":"Basic earnings per share: the formula and the numerator — The rule: the basic earnings per share formula","QST.IAS33.000017":"Preference dividends: cumulative and non-cumulative — The rule: cumulative or non-cumulative","QST.IAS33.000018":"Preference dividends: cumulative and non-cumulative — The rule: cumulative or non-cumulative","QST.IAS33.000020":"Basic earnings per share: the formula and the numerator — The rule: profit attributable to ordinary equity holders","QST.IAS33.000021":"Ordinary shares, potential ordinary shares and dilution — Going deeper: ranking of shares and participating instruments","QST.IAS33.000022":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000023":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000024":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000025":"The weighted average number of ordinary shares — Going deeper: mandatorily convertible instruments","QST.IAS33.000026":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000027":"The weighted average number of ordinary shares — Going deeper: partly paid shares","QST.IAS33.000028":"The weighted average number of ordinary shares — The rule: contingently issuable shares","QST.IAS33.000029":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000030":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000031":"Bonus issue, split, reverse split and retrospective adjustment — The rule: events without a change in resources","QST.IAS33.000032":"The weighted average number of ordinary shares — The rule: weight by time","QST.IAS33.000033":"Bonus issue, split, reverse split and retrospective adjustment — The rule: events without a change in resources","QST.IAS33.000034":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000035":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000036":"Bonus issue, split, reverse split and retrospective adjustment — The rule: events without a change in resources","QST.IAS33.000037":"A rights issue with a bonus element — The rule: theoretical price and adjustment factor","QST.IAS33.000038":"A rights issue with a bonus element — The rule: theoretical price and adjustment factor","QST.IAS33.000039":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000040":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000041":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000042":"Bonus issue, split, reverse split and retrospective adjustment — The rule: retrospective adjustment and events after the reporting date","QST.IAS33.000043":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: corrected errors and changes in policies","QST.IAS33.000044":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: corrected errors and changes in policies","QST.IAS33.000045":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: prior-period diluted earnings","QST.IAS33.000046":"Diluted earnings: principle, numerator and convertible instruments — The rule: the principle of diluted earnings","QST.IAS33.000047":"Diluted earnings: principle, numerator and convertible instruments — The rule: the principle of diluted earnings","QST.IAS33.000048":"Diluted earnings: principle, numerator and convertible instruments — The rule: adjusting the numerator","QST.IAS33.000049":"Diluted earnings: principle, numerator and convertible instruments — The rule: adjusting the numerator","QST.IAS33.000050":"Preference dividends: cumulative and non-cumulative — The rule: deduct preference dividends after tax","QST.IAS33.000051":"Diluted earnings: principle, numerator and convertible instruments — The rule: the additional shares of a convertible","QST.IAS33.000052":"Diluted earnings: principle, numerator and convertible instruments — The rule: the additional shares of a convertible","QST.IAS33.000053":"Diluted earnings: principle, numerator and convertible instruments — The rule: the additional shares of a convertible","QST.IAS33.000054":"Options and warrants: the treasury share method — The rule: the treasury share method","QST.IAS33.000055":"Options and warrants: the treasury share method — The rule: the treasury share method","QST.IAS33.000056":"Options and warrants: the treasury share method — The rule: the treasury share method","QST.IAS33.000057":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","QST.IAS33.000058":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","QST.IAS33.000059":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","QST.IAS33.000060":"The dilution test, the order of inclusion and contingent shares — The rule: the order of inclusion","QST.IAS33.000061":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","QST.IAS33.000062":"The dilution test, the order of inclusion and contingent shares — The rule: the dilution test on continuing operations","QST.IAS33.000063":"The dilution test, the order of inclusion and contingent shares — The rule: contingently issuable shares in diluted earnings","QST.IAS33.000064":"The dilution test, the order of inclusion and contingent shares — The rule: contingently issuable shares in diluted earnings","QST.IAS33.000067":"Options and warrants: the treasury share method — Going deeper: options purchased by the entity","QST.IAS33.000068":"Options and warrants: the treasury share method — Going deeper: written put options","QST.IAS33.000069":"Options and warrants: the treasury share method — Going deeper: employee options and the link with IFRS 2","QST.IAS33.000070":"Presenting earnings per share and discontinued operations — The rule: what appears on the face of the income statement","QST.IAS33.000071":"Presenting earnings per share and discontinued operations — The rule: what appears on the face of the income statement","QST.IAS33.000072":"Presenting earnings per share and discontinued operations — The rule: earnings per share of discontinued operations","QST.IAS33.000073":"Presenting earnings per share and discontinued operations — The rule: earnings per share of discontinued operations","QST.IAS33.000074":"Presenting earnings per share and discontinued operations — The rule: earnings per share of discontinued operations","QST.IAS33.000075":"Disclosure: reconciliations and other amounts per share — The rule: reconciling numerators and denominators","QST.IAS33.000076":"Disclosure: reconciliations and other amounts per share — The rule: reconciling numerators and denominators","QST.IAS33.000077":"Disclosure: reconciliations and other amounts per share — The rule: reconciling numerators and denominators","QST.IAS33.000078":"Disclosure: reconciliations and other amounts per share — Going deeper: antidilutive instruments and subsequent transactions","QST.IAS33.000079":"Disclosure: reconciliations and other amounts per share — Going deeper: other amounts per share","QST.IAS33.000080":"Disclosure: reconciliations and other amounts per share — Going deeper: preference shares classified as liabilities (link with IAS 32)","QST.IAS33.000081":"Options and warrants: the treasury share method — Going deeper: employee options and the link with IFRS 2","QST.IAS33.000082":"Presenting earnings per share and discontinued operations — Going deeper: the link with IFRS 5","QST.IAS33.000083":"Presenting earnings per share and discontinued operations — Going deeper: the income statement under IAS 1 and IFRS 18","QST.IAS33.000084":"Bonus issue, split, reverse split and retrospective adjustment — Going deeper: link with IAS 8 and IAS 10","QST.IAS33.000085":"Diluted earnings: principle, numerator and convertible instruments — Going deeper: the tax effect in the adjustment (link with IAS 12)"}}