Entities required to present earnings per share

Learning objectives

• Determine, from the facts of a case, whether an entity or a group falls within the scope of the Standard (shares traded in a public market, or filing in process for issuing shares in a public market).L1, L2

Normative references

• IAS 33 §2Scope: the Standard applies to the separate or individual financial statements of an entity whose ordinary shares or potential ordinary shares are traded in a public market, or that files (or is in the process of filing) its financial statements with a securities commission for the purpose of issuing ordinary shares in a public market; the same criterion applies to the consolidated financial statements of a group whose parent meets it.

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

2 questions

• A family company whose ordinary shares are not traded in a public market, and which has not filed a document with a securities regulator, must present earnings per share under IAS 33 because it has issued ordinary shares.L1
• Orbane SA, the parent of a group, is preparing its stock market flotation. It has just filed its financial statements with the financial markets authority in order to issue ordinary shares in a public market; its shares are not yet traded. Does Orbane fall within the scope of IAS 33 for its separate and consolidated financial statements?L2