EPS Denominator Moves
Recall the IAS 33 numerator, denominator, and dilution checks for EPS.
Basic EPS What is the basic EPS denominator? The weighted average number of ordinary shares outstanding during the period. Do not default to closing shares if shares changed during the period. Compare Basic EPS vs. diluted EPS Dilution is included only when it worsens EPS or loss per share. Objection The bonus issue happened after year-end, so why adjust EPS? A post-year-end bonus issue changes share count without new resources. Your line IAS 33 treats bonus issues and splits as changing the share count without changing resources, so comparatives need to be restated for comparability. Do not argue from cash…
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