CERTYNEX IFRS ACADEMY

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?

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.

The calculations for the year ended and for the previous year presented rest on the new number of shares, and that fact is disclosed.

Earnings per share is not restated, because the event occurs after the reporting date of the year.

The restatement concerns the year ended, but the previous year presented stays at its published earnings per share.