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Topics hide Contingently issuable POSs EPS implications Dilutive or anti-dilutive? Case – Contingently issuable POSs Workings – Year 1 Workings – Year 2 Contingently issuable POSs Contingently issuable POSs are not specifically defined in IAS 33, but they are closely related to contingently issuable ordinary shares (see 5.10.10–80). These are POSs that are issuable for … Read more
Topics hide Unvested ordinary shares (and ordinary shares subject to recall) EPS implications Dilutive or anti-dilutive? Case – Unvested ordinary shares – Without dividend entitlement Workings Case – Unvested ordinary shares – With dividend entitlement Workings Year 1 Unvested ordinary shares (and ordinary shares subject to recall) Unvested shares are commonly granted in exchange for … Read more
A vesting condition that requires: the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit; and specified performance target(s) to be met while the counterparty is rendering the service required in (a). The period of achieving the performance target(s): shall not extend beyond the … Read more
Topics hide EPS Impact of share-based payments 1. IFRS 2 Settlement alternatives 1.1 Equity-settled share-based payments 1.2 Cash-settled share-based payments 1.3 Share-based payment arrangements with the option to settle in ordinary shares or cash 2 Vesting conditions EPS Impact of share-based payments Because share-based payments are common and they impact EPS, it is important to … Read more
Contingently issuable ordinary shares are ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may … Read more
Topics hide Partly paid ordinary shares Partly paid ordinary shares EPS implications Dilutive or anti-dilutive? Case – Partly paid ordinary shares with participating rights Partly paid ordinary shares This narrative builds on the basic principles introduced in EPS or earnings per share, and sets out the specific basic and diluted EPS implications of the following … Read more
Topics hide IAS 33 Earnings per Share IAS 33 Application guidance EPS IAS 33 Earnings per Share IAS 33 Application guidance EPS Appendix A Application guidance This appendix is an integral part of the Standard. Profit or loss attributable to the parent entity A1 For the purpose of calculating earnings per share based on the … Read more
Use back button from the brower Topics hide Denominator adjustment for options – The treasury share method Assumed proceeds Average market price of ordinary shares Exercise price settled (or partially settled) by other instruments Proceeds used to redeem other instruments Case – Options settled gross in shares Workings Case – Options – Proceeds used to … Read more
Topics hide IFRS 2 Share-based Payment IFRS 2 Objective Scope Recognition IFRS 2 Share-based Payment IFRS 2 Objective Scope Recognition Objective 1 The objective of this IFRS is to specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or … Read more
Topics hide EPS Calculation Case Details of the instruments and ordinary share transactions during Year 1 and Year 2 1. Convertible preference shares 2. Treasury shares 3. Shares issued for cash 4. Partly paid ordinary shares 5. Stock dividends 6. Ordinary shares issued as consideration in a business combination 7. Share options 8. Contingently issuable … Read more