Purpose of the standard

Learning objectives

• Explain why earnings per share are standardised (comparison between entities and between periods) and why the focus is on the denominator.L1

Normative references

• IAS 33 §1Objective: to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity; the Standard focuses on the denominator of the calculation.

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

2 questions

• IAS 33 prescribes the principles for determining and presenting earnings per share so as to improve performance comparisons between entities in the same period and for the same entity from one period to the next.L1
• To improve the comparison of performance, which element of the earnings per share calculation does IAS 33 emphasise most?L1