Link with IAS 8 and IAS 10

Learning objectives

• Explain the link with IAS 8 (errors and changes in accounting policies) and IAS 10 (events after the reporting period).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.

1 question

• A share split decided after the reporting date but before the financial statements are authorised for issue has no effect on the earnings per share of the period ended.L3