Link with IAS 12

Learning objectives

• Explain that adjustments to the numerator are presented after tax (IAS 12).L3

Normative references

• IAS 33 §33For diluted earnings per share, basic earnings are adjusted for the after-tax effect of dividends, interest and any other changes in income or expense that would no longer arise if the dilutive potential ordinary shares were converted into ordinary shares (for example, after-tax interest saved on convertible debt).

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

1 question

• 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?L3