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WorkpaperIAS 33 — Earnings per ShareL3 · L4

Retrospective restatement and presentation of earnings per share: comparatives, discontinued operations and reconciliations

5 missions8 sections to document60 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Identify the events that change the number of shares with no change in resources, restate the number of shares and earnings per share of prior periods (adjustment factor, corrections of errors), compute earnings per share from continuing and discontinued operations, reconcile the basic and diluted numbers of shares, document the judgment on the price before detachment and prepare the draft presentation and note. Amounts and factors are case data; earnings per share is rounded to two decimals (case convention).

8 sections · 31 blocks · 7 calculations · 0 entries

  • IAS 33 §26
  • IAS 33 §27
  • IAS 33 §28
  • IAS 33 §A2
  • IAS 33 §64
  • IAS 33 §66
  • IAS 33 §69
  • IAS 33 §68
  • IAS 33 §70
  • IAS 33
  • IAS 33 §73

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

5 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Rights issue with a bonus element: adjustment factor, weighting of the year and restated comparative earnings per share
Case tasks documented here
  • Restate the number of shares before the exercise of the rights.
  • Compute the 20X5 profit attributable to the ordinary shares after the correction of the error.
  • Compute basic earnings per share for 20X6, as published for 20X5 and restated for 20X5.
  • Is the observed price before detachment an appropriate basis for the adjustment factor?
1

Facts and data

Inputs

  • Events changing the number of shares with no change in resources, and their dates

    Text

  • Corrections of errors and changes in policies applied retrospectively

    Text

  • Price observed before the rights are detached and evidence of its representativeness

    Text

  • Components of profit or loss: continuing operations, discontinued operations, losses, classes of shares

    Text

  • Share transactions after the reporting date and antidilutive instruments excluded

    Text

  • Per-share basis (one share)

    Number

    1 units

  • Weighted average number published for the prior period

    Number

    5,000,000 units

  • Restatement factor for prior periods (%)

    Number

    105 %

  • Attributable earnings published for the prior period

    Number

    5,250,000

  • Attributable earnings of the prior period after corrections

    Number

    4,987,500

  • Earnings from continuing operations attributable to ordinary shares for the period

    Number

  • Basic weighted average number for the period

    Number

  • Result of discontinued operations attributable to ordinary shares

    Number

  • Effect of class of instruments 1 on the number of shares

    Number

  • Effect of class of instruments 2 on the number of shares

    Number

  • Effect of class of instruments 3 on the number of shares

    Number

2

Supporting documents

Evidence

  • Documents obtained and referenced (minutes, prices, statements of discontinued operations)

    EvidenceRequired

3

Analysis of the retrospective restatements

Analysis

IAS 33 §26IAS 33 §27IAS 33 §28IAS 33 §A2IAS 33 §64

  • Points reviewed: retrospective restatements

    ChecklistRequired

    • Events identified: bonus issue, bonus element of a rights issue, share split, reverse split
    • Basic and diluted earnings per share of all periods presented recalculated
    • Rights issue: adjustment factor applied to prior periods
    • Corrections of errors and changes in policies reflected in earnings per share
    • Change after the reporting date but before authorisation for issue: new number of shares and fact disclosed
4

Restatement of comparatives, discontinued operations and reconciliation of denominators

Calculations

IAS 33 §A2IAS 33 §64IAS 33 §68IAS 33 §70

  • Number of shares of the prior period restated (published × factor)

    Calculation

    5,250,000

    Weighted average number published for the prior period ; Restatement factor for prior periods (%)

  • Basic earnings per share published for the prior period

    Calculation

    1.05

    Attributable earnings published for the prior period ; Per-share basis (one share) ; Weighted average number published for the prior period

  • Restated basic earnings per share of the prior period

    Calculation

    0.95

    Attributable earnings of the prior period after corrections ; Per-share basis (one share) ; Number of shares of the prior period restated (published × factor)

  • Basic earnings per share from continuing operations

    Calculation

    Earnings from continuing operations attributable to ordinary shares for the period ; Per-share basis (one share) ; Basic weighted average number for the period

  • Diluted number of shares (basic number + effect of each class of instrument)

    Calculation

    0

    Basic weighted average number for the period ; Effect of class of instruments 1 on the number of shares ; Effect of class of instruments 2 on the number of shares ; Effect of class of instruments 3 on the number of shares

  • Basic earnings per share from discontinued operations

    Calculation

    Result of discontinued operations attributable to ordinary shares ; Per-share basis (one share) ; Basic weighted average number for the period

  • Diluted earnings per share from discontinued operations (denominator of continuing operations, IAS 33, paras. 41 and 42)

    Calculation

    Result of discontinued operations attributable to ordinary shares ; Per-share basis (one share) ; Diluted number of shares (basic number + effect of each class of instrument)

5

Judgment: value before the exercise of the rights

Judgment

IAS 33 §A2

  • Price before detachment retained for the adjustment factor

    JudgmentRequired

    Observed price retained

    Observed price retained / Further evidence needed

    Professional judgment: the price before detachment is case data; whether it is representative is a matter of judgment and no method is imposed.

  • Rationale: active market, last session before detachment and representativeness of the price

    Text

    ACTIVE_MARKET_LAST_SESSION_BEFORE_DETACHMENT

6

Presentation and disclosures

Disclosure

IAS 33 §66IAS 33 §68IAS 33 §69IAS 33 §70

  • Points reviewed: presentation and disclosures

    ChecklistRequired

    • Face of the income statement: basic and diluted earnings per share, continuing operations and total profit attributable to the parent
    • Equal prominence for all periods presented
    • Earnings per share presented even when negative (loss per share)
    • Discontinued operations: earnings per share on the face or in the notes
    • Basic and diluted numerators reconciled to the parent profit, by class of instrument
    • Basic and diluted denominators reconciled, by class of instrument
    • Instruments excluded from diluted earnings per share because antidilutive
    • Share transactions after the reporting date described
    • Other per-share amounts: the standard also applies to these amounts

  • Draft note: earnings per share, reconciliations and subsequent events

    Text

7

Conclusion

Conclusion

  • Restated comparatives, reconciled denominators, judgment and presentation submitted to the reviewer

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Judgment documentedPass
  • Rationale writtenPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0