Corrections of errors and changes in policies

Learning objectives

• Explain that earnings per share for all periods presented are adjusted for corrections of errors and changes in accounting policies accounted for retrospectively.L3

Normative references

• IAS 33 §64If the number of ordinary or potential ordinary shares increases as a result of a capitalisation, bonus issue or share split, or decreases as a result of a reverse share split, basic and diluted earnings per share for all periods presented are adjusted retrospectively; if the change occurs after the reporting period but before the financial statements are authorised for issue, the calculations for that period and for any prior periods presented are based on the new number of shares, and that fact is disclosed. Basic and diluted earnings per share for all periods presented are also adjusted for the effects of errors and changes in accounting policies accounted for retrospectively.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• 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?L3
• 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?L3