Profit attributable to ordinary equity holders

Learning objectives

• Determine the profit or loss attributable to ordinary equity holders of the parent, in total and from continuing operations, from the data of a case.L1, L2, L3

Normative references

• IAS 33 §9Basic earnings per share are calculated for profit or loss attributable to ordinary equity holders of the parent entity and, if presented, for profit or loss from continuing operations attributable to those equity holders.
• IAS 33 §12For the purpose of calculating basic earnings per share, the amounts attributable to ordinary equity holders of the parent (total profit or loss and profit or loss from continuing operations) are adjusted for the after-tax amounts of preference dividends, differences arising on the settlement of preference shares, and other similar effects of preference shares classified as equity.

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

5 questions

• 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.L1
• 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.L2
• 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.L3
• 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?L1
• 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?L3