CERTYNEX IFRS ACADEMY

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?

It deducts the preference dividends, at their pre-tax amount.

It deducts the dividends paid to ordinary shareholders during the year.

It leaves the numerator unchanged and instead adjusts the number of shares in the denominator.

It deducts the preference dividends, at their after-tax amount.