Last update 07/02/2020
Example 2 Weighted average number of ordinary shares
Reference: IAS 33, paragraphs 19-21
|
Shares issued |
Treasury(a) shares |
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 |
0 |
2,500 |
|
1 December 20X1 |
Purchase of treasury shares for cash |
0 |
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
(a) Treasury shares are equity instruments required and held by the issuing entity itself or by its subsidiaries