IAS 33 Convertible bonds at issuer’s options

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Topics hide IAS 33 Earnings per Share IAS 33 Convertible bonds at issuer’s options IAS 33 Earnings per Share IAS 33 Convertible bonds at issuer’s options Example 8 Convertible bonds settled in shares or cash at the issuer’s options Reference: IAS 33, paragraphs 31-33, 36, 58 and 59 An entity issues 2,000 convertible bonds at … Read more

IFRS 2 Share-based payments and cash alternatives

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Topics hide IFRS 2 Share-based Payment IFRS 2 Share-based payments and cash alternatives IFRS 2 Share-based Payment IFRS 2 Share-based payments and cash alternatives Share-based payment transactions with cash alternatives 34 For share-based payment transactions in which the terms of the arrangement provide either the entity or the counterparty with the choice of whether the … Read more

Options in EPS Calculations in IAS 33

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Topics hide Options in EPS Calculations, warrants and their equivalents EPS implications Dilutive or anti-dilutive? 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 … Read more

Contingently issuable POSs

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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

Unvested ordinary shares

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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

Performance condition

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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

EPS Impact of share-based payments

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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

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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

Partly paid ordinary shares

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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

IAS 33 Application guidance EPS

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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