40楼#
发布于:2012-01-16 18:04
Example 4 - Rights Issue
Reference: IAS 33, paragraphs 26, 27(b) and A2 20X0 20X1 20X2 Profit attributable to ordinary equity holders of the parent entity CU1,100 CU1,500 CU1,800 Shares outstanding before rights issue 500 shares Rights issue One new share for each five outstanding shares (100 new shares total) Exercise price: CU5.00 Date of rights issue: 1 January 20X1 Last date to exercise rights: 1 March 20X1 Market price of one ordinary share immediately before exercise on 1March 20X1: CU11.00 Reporting date 31 December Calculation of theoretical ex-rights value per share Fair value of all outstanding shares before the exercise of rights + total amount received from exercise of rights Number of shares outstanding before exercise + number of shares issued in the exercise (CU11.00 x 500 shares) + (CU5.00 x 100 shares) 500 shares + 100 shares |
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41楼#
发布于:2012-01-16 18:04
Example 3 - Bonus Issue
Reference: IAS 33, paragraphs 26, 27(a) and 28 Profit attributable to ordinary equity holders of the parent entity 20X0 CU180 Profit attributable to ordinary equity holders of the parent entity 20X1 CU600 Ordinary shares outstanding until 30 September 20X1 200 Bonus issue 1 October 20X1 2 ordinary shares for each ordinary share outstanding at 30 September 20X1 200×2 = 400 Basic earnings per share 20X1 CU600 = CU100 (200 + 400) Basic earnings per share 20X0 CU180 = CU0.30 (200 + 400) Because the bonus issue was without consideration, it is treated as if it had occurred before the beginning of 20X0, the earliest period presented. |
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42楼#
发布于:2012-01-16 18:04
2 This is before dividend payment.
Example 2 - Weighted Average Number of Ordinary Shares Reference: IAS 33, paragraphs 19-21 Shares issued Treasury shares [3] Shares outstanding 1 January 20X1 Balance at beginning of year 2,000 300 1,700 31 May 20X1 Issue of new shares for cash 800 -- 2,500 1 December 20X1 Purchase of treasury shares for cash -- 250 2,250 31 December 20X1 Balance at year end 2,800 550 2,250 Calculation of weighted average: (1,700) x 5/12) + (2,500 x 6/12) + (2,250 x 1/12) = 2,146 shares or (1,700) x 12/12) + (800 x 7/12) - (250 x 1/12) = 2,146 shares 3 Treasury shares are equity instruments reacquired and held by the issuing entity itself or by its subsidiaries. |
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43楼#
发布于:2012-01-16 18:04
Because the shares are classified as equity, the original issue discount is amortised to retained earnings using the effective interest method and treated as a preference dividend for earnings per share purposes. To calculate basic earnings per share, the following imputed dividend per class A preference share is deducted to determine the profit or loss attributable to ordinary equity holders of the parent entity:
Year Carrying amount of class A preference shares Imputed dividend [1] Carrying amount of class A preference shares Dividend paid 1 January 31 December [2] CU CU CU CU 20X1 81.63 5.71 87.34 - 20X2 87.34 6.12 93.46 - 20X3 93.46 6.54 100.00 - Thereafter: 100.00 7.00 107.00 (7.00) 1 at 7% |
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44楼#
发布于:2012-01-16 18:04
Example 1 - Increasing Rate Preference Shares
Reference: IAS 33, paragraphs 12 and 15 Entity D issued non-convertible, non-redeemable class A cumulative preference shares of CU100 par value on 1 January 20X1. The class A preference shares are entitled to a cumulative annual dividend of CU7 per share starting in 20X4. At the time of issue, the market rate dividend yield on the class A preference shares was 7 per cent a year. Thus, Entity D could have expected to receive proceeds of approximately CU100 per class A preference share if the dividend rate of CU7 per share had been in effect at the date of issue. In consideration of the dividend payment terms, however, the class A preference shares were issued at CU81.63 per share, ie at a discount of CU18.37 per share. The issue price can be calculated by taking the present value of CU100, discounted at 7 per cent over a three-year period. |
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45楼#
发布于:2012-01-16 18:03
Illustrative Examples
These examples accompany, but are not part of, IAS 33. Contents Example 1 Increasing Rate Preference Shares Example 2 Weighted Average Number of Ordinary Shares Example 3 Bonus Issue Example 4 Rights Issue Example 5 Effects of Share Options on Diluted Earnings per Share Example 5A Determining the Exercise Price of Employee Share Options Example 6 Convertible Bonds Example 7 Contingently Issuable Shares Example 8 Convertible Bonds Settled in Shares or Cash at the Issuer's Option Example 9 Calculation of Weighted Average Number of Shares: Determining the Order in Which to Include Dilutive Instruments Example 10 Instruments of a Subsidiary: Calculation of Basic and Diluted Earnings per Share Example 11 Participating Equity Instruments and Two-Class Ordinary Shares Example 12 Calculation of Basic and Diluted Earnings per Share and Income Statement Presentation (Comprehensive Example) |
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46楼#
发布于:2012-01-16 18:03
Other Changes
BC15. Implementation questions have arisen since the previous version of IAS 33 was issued, typically concerning the application of the Standard to complex capital structures and arrangements. In response, the Board decided to provide additional application guidance in the Appendix as well as illustrative examples on more complex matters that were not addressed in the previous version of IAS 33. These matters include the effects of contingently issuable shares, potential ordinary shares of subsidiaries, joint ventures or associates, participating equity instruments, written put options, and purchased put and call options. |
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47楼#
发布于:2012-01-16 18:03
BC13. The Board also considered whether it could mandate the frequency of interim reporting to ensure consistency between all entities preparing financial statements in accordance with IFRSs, ie those that are brought within the scope of IAS 33 by virtue of issuing publicly traded instruments or because they elect to present earnings per share. However, IAS 34 states that, "This Standard does not mandate which entities should be required to publish interim financial reports, how frequently, or how soon after the end of an interim period." The frequency of interim reporting is mandated by securities regulators, stock exchanges, governments, and accountancy bodies, and varies by jurisdiction.
BC14. Although the proposed approach for the calculation of year-to-date diluted earnings per share would have converged with US SFAS 128, the Board concluded that the approach was inconsistent with IAS 34 and that it could not mandate the frequency of interim reporting. The US Financial Accounting Standards Board has agreed to consider this difference as part of the joint short-term convergence project with the IASB as well as the issue noted in paragraph BC9. |
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48楼#
发布于:2012-01-16 18:03
BC11. The majority of the respondents on the Exposure Draft disagreed with the proposed approach to the year-to-date calculation of diluted earnings per share. The most significant argument against the proposed approach was that the proposed calculation of diluted earnings per share could result in an amount for year-to-date diluted earnings per share that was different for entities that report more frequently, for example, on a quarterly or half-yearly basis, and for entities that report only annually. It was also noted that this problem would be exacerbated for entities with seasonal businesses.
BC12. The Board considered whether to accept that differences in the frequency of interim reporting would result in different earnings per share amounts being reported. However, IAS 34 Interim Financial Reporting states "the frequency of an entity's reporting (annual, half-yearly, or quarterly) should not affect the measurement of its annual results. To achieve that objective, measurements for interim reporting purposes should be made on a year-to-date basis." |
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49楼#
发布于:2012-01-16 18:03
Calculation of Year-To-Date Diluted Earnings Per Share
BC10. The Exposure Draft proposed the following approach to the year-to-date calculation of diluted earnings per share: (a) The number of potential ordinary shares is a year-to-date weighted average of the number of potential ordinary shares included in each interim diluted earnings per share calculation, rather than a year-to-date weighted average of the number of potential ordinary shares weighted for the period they were outstanding (ie without regard for the diluted earnings per share information reported during the interim periods). (b) The number of potential ordinary shares is computed using the average market price during the interim periods, rather than using the average market price during the year-to-date period. (c) Contingently issuable shares are weighted for the interim periods in which they were included in the computation of diluted earnings per share, rather than being included in the computation of diluted earnings per share (if the conditions are satisfied) from the beginning of the year-to-date reporting period (or from the date of the contingent share agreement, if later). |
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