Diploma in IFRS
Module 5
Performance
Measurement
www.charteredaccountants.ie
EDUCATING
SUPPORTING
REPRESENTING
Introduction and Overview
Learning Objectives
• Explain the core principles in revenue reporting as set out in
IAS 18 Revenue
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Explain how to account for contracts with multiple sale
elements and how to allocate fair values across different
elements of a contract
Outline how to apply the general principles to specific
applications
Outline the latest changes being proposed in the ED Revenue
Recognition in contracts with customers
Introduction and Overview
Learning Objectives (Cont’d)
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Explain the rationale behind segment reporting
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Define an operating segment and outline the information that
must be reported under IFRS 8, Operating Segments
• Explain why it is necessary to charge an expense for sharebased payment schemes under IFRS 2, Share Based Payment
•
Explain the differences between the three main types of
options – equity settled, cash settled and hybrid schemes
• Calculate the fair value of the options as at the date of grant
and show what information needs to be reported in the
financial statements
Introduction and Overview
Learning Objectives (Cont’d)
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Outline the requirements of IAS 19, Employee Benefits, in
relation to short-term and long-term employee-benefits
Outline how to account for termination benefits
Understand the difference between defined-contribution
and defined-benefit pension schemes and their impact on
their accounting treatment
Calculate defined benefit surpluses/deficits and account
for these in the Statement of Financial Position and
Statement of Comprehensive Income
Introduction and Overview
Learning Objectives (Cont’d)
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Outline the disclosures required by IAS 19 Revenue
Understand why it is necessary to calculate earnings per
share
Define both basic and diluted earnings per share (EPS) and
outline how they are accounted for under IAS 33, Earnings
per Share
Calculate both EPSs with the inclusion of rights and bonus
issues (basic) and share options and convertible loans
(diluted)
Explain the importance of diluted EPS
IAS 18 Revenue
General Principles
Key Figure – used in ratio analysis
Substance over form
Covers goods, services, interest, royalties and
dividends
Key issue – when can revenue be recognised?
IAS 18 Revenue
Definition
Revenue
Fair value
IAS 18 Revenue
Measurement
Fair value of consideration received or receivable
If consideration is receivable in the
future, use present value and recognise
interest income as discount unwinds
IAS 18 Revenue
Example – future cash payment
Abbey sells goods to Brett on 1 January 2011 for 3,600, receivable
on 1 January 2013. The fair value of revenue recognised by Abbey is
based on the present value of future cash flow, assuming a rate of
interest of 4.5% per annum.
On 1 January 2011, Abbey should recognise revenue of 3,297 (3,600
discounted for 2 years) The discount should be ‘unwound’ at each
period end to reflect the passage of time.
The resulting increase in the trade receivables balance represents
interest income which is recognised over the period from the date of
sale to the date of receipt of cash.
Assuming the year end is 31 December, the following would be
recorded:
Opening balance
Trade receivables
Year 2011
Year 2012
3,297
3,445
Statement of
Comprehensive Income
Interest income Revenue
148
155
Closing balance
3,297
Trade receivables
3,445
3,600
IAS 18 Sale of goods
Examples
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bill and hold sales;
goods shipped subject to conditions;
lay away sales;
orders when payment is received in
advance;
sale and repurchase agreements;
sales to intermediate parties for resale;
subscriptions to publications and similar
items;
instalment sales.
IAS 18 Sale of goods - Recognition
Revenue from the sale of goods shall be recognised
when all of the following conditions are satisfied:
•
the seller has transferred to the buyer the significant risks and
rewards of ownership of the goods;
•
the seller retains neither continuing managerial involvement with
the goods nor effective control over them;
•
the amount of revenue can be reliably measured;
•
it is probable that the economic benefits associated with the
transaction will flow to the seller, and;
•
the costs incurred (or to be incurred) in respect of the transaction
can be measured reliably.
Transfer of risks and rewards of ownership
Revenue is recognised only when significant risks and rewards of ownership are
transferred - normally transfer of legal title or the passing of possession
Examples where the seller retains significant risks and rewards include:
• the seller retains an obligation for unsatisfactory performance not
covered by normal warranty conditions;
• the receipt of revenue from a particular sale depends on the buyer
being able to sell the goods on to a third party;
• goods are shipped subject to installation and the installation is a
significant part of the contract which has not yet been completed;
• the buyer has the right to rescind the purchase for a reason
specified in the sales contract and the entity is uncertain about the
probability of return.
If the seller retains only insignificant risks and rewards of ownership, the
transaction is a sale and revenue can be recognised.
Example
Bill and hold sales
Example – bill-and-hold sales
Wicklow Ltd entered into a contract during 2009 to supply 100,000 game
consoles at 50 each. The contract contains specific instructions from customer
Y with regard to the timing and location of the delivery. Wicklow Ltd must
deliver the consoles at a date specified by the customer. Normal payment
terms apply. At 31 December 2009, Wicklow Ltd still has 10,000 game
consoles relating to the contract with Customer Y. However, Wicklow cannot
use these consoles to satisfy other sales orders and at 31 December 2009 title
to the 10,000 consoles has passed to Customer Y. Delivery is expected to take
place in 2010. The consoles are sold by Wicklow Ltd at a margin of 20%.
Solution
Revenue should be recognised in year ended 31 December 2009 for this
entire contract. Goods are specific to the customer, the customer has taken
title, and delivery has been delayed at the request of customer. Year ended 31
December 2009 Revenue (100,000 x 50) 5,000,000 Cost of sales (5,000,000 x
80/100) 4,000,000
Probability that economic benefits will flow
Revenue is recognised only when it is probable that the economic
benefits associated with the transaction will flow to the seller.
In some cases there may be uncertainties – e.g. goods sold to an
overseas customer may require government approval before
consideration can be passed. If a significant uncertainty exists,
revenue should not be recognised until the uncertainty is removed.
If revenue is recognised but subsequently a bad debt occurs, the
uncollectible amount is treated as an expense (bad debt) rather
than a reduction in the amount of revenue originally recognised.
IAS 18 Rendering of Services
The performance of a contractually-agreed task over an agreed period
of time. May be rendered in a single period or over more than one
period
Examples
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installation fees;
servicing fees included in the price of a product;
advertising commissions;
insurance agency commissions;
financial services fees;
admission fees;
tuition fees;
initiation, entrance and membership fees;
franchise fees;
fees from the development of customised software
IAS 18 Rendering of Services
Recognition
The outcome of a transaction can be estimated reliably when all of the
following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction
will flow to the entity;
• the stage of completion of the transaction at the end of the period can be
measured reliably;
• the costs incurred for the transaction and the costs to complete the
transaction can be measured reliably.
The stage of completion may be determined by a variety of methods:
survey of work performed;
percentage of total services to be performed;
proportion that costs incurred to date bear to the estimated
total costs of the transaction
IAS 18 Rendering Services
Example – rendering of services
Kildare Ltd opened a sports centre in January 2008 and charges a
joining fee of 250 entitling members to life membership. There are no
annual charges and members pay 4 per session at the centre. Nonmembers are allowed to use the centre for 6 per visit. Based on
experiences of similar sports centres, Kildare Ltd estimates that
members use the centre about 50 times per year and that, on
average, each member remains active for 2 years. No extra services
are provided to members compared to non-members. During the
years ended 31 December 2008 and 31 December 2009, 1,000 and
1,200 new members joined respectively. The joining fees have been
credited to revenue in both years.
Solution
The discount that each member obtains can be estimated at 200 (2 per visit
x 100 visits over course of active membership). Therefore, 50 may be
recognised when membership commences and the remaining 200 spread
over the expected 2 years of active membership.
2008 - Cash received 1,000 x 250 = 250,000
Revenue recognised in 2008: (1,000 x 50) + (1,000 x ½ 3 200) = 150,000
Revenue recognised in 2009: (1,000 x ½ 3 200) + 100,000
2009 - Cash received 1,200 x 250 = 300,000
Revenue recognised in 2009: (1,200 x 50) + (1,200 x ½ 3 200) = 180,000
Revenue recognised in 2010: (1,200 x ½ 3 200) + 120,000
Royalties, interest and dividends
Recognition – interest, royalties and dividends
These revenues are recognised when both of the following conditions are
satisfied:
• it is probable that the economic benefits associated with the
transaction will flow to the entity; and
• the amount of the revenue can be measured reliably
If conditions are satisfied:
• interest is recognised using the effective interest method (as per
IAS 39 Financial Instruments);
• royalties are recognised on the accruals basis;
• dividends are recognised when the shareholder’s right to receive
payment is established.
Example – multiple-element transactions
Samson Ltd sells a particular machine and, in addition, provides a
maintenance service for a year.
The price of the machine and maintenance package is 200,000.
Customers can also purchase the machine and maintenance service
separately.
The price of the machine is 190,000 and the price of the maintenance
contract is 20,000 per annum. A customer purchases the machine and
maintenance package and receives delivery of the machine on 1 July
2010.
How much revenue should Samson Ltd recognise in the year ended
31 December 2010?
Example – multiple-element transactions
Solution
As it is possible to purchase the machine and maintenance separately, the
contract has two separate components.
The discount offered when the components are sold together of 10,000 (210,000
less 200,000) - apply pro-rata each component based on its individual fair value:
Fair value of machine (190,000/210,000) x 200,000
Fair value of maintenance contract (20,000/210,000) x 200,000
Total revenue
180,952
19,048
200,000
Revenue recognised for the year ended 31 December 2010
Machine
Maintenance contract (1 Jul – 31 Dec) 19,048 x 6/12
Total revenue recognised
180,952
9,524
190,476
The other 9,524 is recorded as deferred income in the Statement of Financial
Position and recognised in revenue in 2011.
IAS 18 Presentation and Disclosure
The following disclosures must be made:
• accounting policies adopted for the recognition of revenue, including the
methods adopted to determine the stage of completion of transactions
involving the rendering of services;
• the amount of each significant category of revenue recognised during the
period;
• the amount of revenue arising from exchanges of goods or services
included in each significant category of asset.
• An entity must also disclose any contingent assets and contingent
liabilities, such as warranty costs, claims, penalties or possible losses (in
accordance with IAS 37 Provisions, Contingent Liabilities and Contingent
Assets).
General Principles
Goods
• Transfer of risks
& rewards
• Management
involvement
• Substance of the
transaction
1. Measure reliably
2. Flow of
economic
benefits
probable
3. Costs measured
reliably
Interest – time apportion
Royalties – accruals basis
Dividends – when right to receive
established
Services
• Percentage of
completion method
• IAS 11 construction
contracts
ED Revenue from Contracts with Customers
(June 2010)
1. Identifying the contract
Commercial substance, approval, identification of
rights and terms/manner of payment
2. Combination and segmentation of contracts
Single contracts normal
Combination – same time, single package, performed
concurrently or consecutively
Segmentation – prices independent
ED Revenue from Contracts with Customers
(June 2010)
3. Contract modifications
If modification interdependent – recognise in period
If not interdependent – treat as separate contract
4. Identifying Separate performance
obligations
Must identify distinct goods/services (sold separately or
could be sold separately)
5. Record revenue when obligations performed
IAS 18 Extracts from published accounts
Attica Group – Year Ended 31 December 2009 (Greece)
Accounting Policy Note – Revenue
Cyprus Airways – Year Ended 31 December 2009 (Cyprus)
Accounting Policy Note – Revenue
Cyprus Airways – Year Ended 31 December 2009 (Cyprus)
Note to the Financial Statements – Revenue
South African Broadcasting Corporation – Year Ended 31 March 2009 (South
Africa) Accounting Policy Note – Revenue
South African Broadcasting Corporation – Year Ended 31 March 2009 (South
Africa) Note to the Financial Statements – Revenue
Attica Group
Cyprus Airways
Cyprus Airways
South African Broadcasting
South African Broadcasting
IAS 18 Revenue
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Gigmaster Ltd
Your Bay Ltd
Purple Ltd
Self Test Questions
Case Study 1
Tambo Plc
Case Study Tambo Plc Solution
Case Study
Tambo Plc solution
IFRS 8 Operating Segments
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Introduction
Multi national companies diversified
products and geographically
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Definition
Operating segment
Chief operating decision maker
Identifying operating segments
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Management Approach
Internal Management structure
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Start up operations
Could be a segment
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Corporate HQ
Through the eyes of management
Reportable segments
Entities must disclose separately information about each
operating segment. Two or more operating segments may
be combined into a single operating segment if they have
similar economic characteristics and are similar in each of
the following respects:
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nature of the products and services;
nature of production processes;
type or class of customer for their products or services;
methods used to distribute their products or provide
their services;
• nature of the regulatory environment (if applicable).
Quantitative thresholds
Entities must disclose separately information about each operating
segment that meets any of the following quantitative thresholds:
• its reported revenue (internal and external) is at least 10% of the
combined revenue of all operating segments;
• its reported profit or loss is at least 10% of the greater of the:
i) combined reported profit of all operating segments
that did not report a loss, and
ii) combined reported loss of all operating segments that
reported a loss; or
• its assets are at least 10% of the combined assets of all operating
segments.
Operating segments not meeting quantitative thresholds
If an operating segment does not meet any of these quantitative
thresholds, it still may be treated as a separate reportable segment if
management believes that information about the segment would be useful
to users of the financial statements.
Alternatively, the entity may combine such segments with other segments
that do not meet the thresholds, but only with segments that have similar
economic characteristics.
At least 75% of an entity’s external revenue must be reported by operating
segments. If the 75% criterion is not met, the entity must identify additional
segments (even if they do not meet the quantitative thresholds) until at
least 75% of the entity’s external revenue is reported.
Other business activities and operating segments that are not reportable
should be combined and disclosed in an ‘all other segments’ category.
IFRS 8 Disclosure
Entities must disclose separately information about each
operating segment that meets any of the following quantitative
thresholds:
• its reported revenue (internal and external) is at least 10% of
the combined revenue of all operating segments;
• its reported profit or loss is at least 10% of the greater of the:
• combined reported profit of all operating segments that did
not report a loss, and
• combined reported loss of all operating segments that
reported a loss; or
• its assets are at least 10% of the combined assets of all
operating segments.
IFRS 8 Disclosure
General information
An entity must disclose the following general information:
• factors used to identify the entity’s reportable segments, including the basis of
organisation (e.g. products, services, geographical areas, regulatory
environments); and
• types of products and services from which each reportable segment derives its
revenues.
Information about profit or loss, assets and liabilities
An entity must report a measure of profit or loss and total assets for each
reportable segment. A measure for total liabilities must also be reported if such an
amount is regularly provided to the chief operating decision-maker.
IFRS 8 Disclosure
An entity must disclose the following about each reportable segment if the
specified amounts are included in the measure of segment profit or loss
reviewed by the chief operating decision maker:
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revenues from external customers;
revenues from transactions with other operating segments of the same entity;
interest revenue;
interest expense;
depreciation and amortisation;
material items of income and expense disclosed in accordance with IAS 1;
the entity’s interest in the profit and loss of associates and joint ventures
accounted for by the equity method;
• income tax expense or income;
• material non-cash items other than depreciation and amortisation.
IFRS 8 Measurement
Internal information used for decision making purposes
• the basis of accounting for transactions between reportable segments;
• the nature of any differences between the measurement of the reportable
segment’s profit/loss and the entity’s reported profit/loss (e.g. accounting
policies, policies for the allocation of jointly used assets);
• the nature of any differences between the measurement of the reportable
segment’s liabilities and the entity’s liabilities (e.g. accounting policies, policies
for the allocation of jointly utilised liabilities);
• the nature and effect of any changes from prior periods in the measurement
methods used to determine reported segment profit/loss;
• the nature and effect of any asymmetrical allocations to reportable segments
(e.g. depreciation allocated to a segment but not the related asset).
IFRS 8 Reconciliations
An entity shall provide reconciliations of all of the following:
• the total of the reportable segments’ revenue to the entity’s revenue;
•
the total of the reportable segments’ profit or loss to entity’s profit or loss;
•
the total of the reportable segments’ assets to the entity’s assets;
•
the total of the reportable segments’ liabilities to the entity’s liabilities (if
reported above); and
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the total of the reportable segments’ amounts for every other material item
of information disclosed to the corresponding amount for the entity.
Restatement of previously reported information
If an entity changes the structure of its internal organisation in a manner
that causes the composition of the reportable segments to change, the
corresponding information for earlier periods must be restated unless
the information is not available and the cost to develop it would be
excessive.
If segment information for earlier periods is not restated, the entity must
disclose the segment information for the current period on both the old
basis and the new basis of segmentation, unless the necessary
information is not available and the cost to develop it would be
excessive.
IFRS 8 Disclosures
Entity-wide disclosures
The following entity-wide information must be disclosed:
• revenues from external customers for each product, service or groups of
similar products or services;
• revenues from external customers attributed to the entity’s country of
domicile;
• revenues from external customers attributed to all foreign countries in total;
• non-current assets located in the entity’s country of domicile;
• non-current assets located in all foreign countries in total; and
• the total amount of revenue generated by an individual customer and the
related segment(s) where it is reported, where an individual customer
generates 10% or more of the total external revenue. Customers’ identities
need not be disclosed.
IFRS 8 Self Test Example
•
Sparks Plc
Extracts from Published Accounts
Anheuser-Busch InBev – 31 December 2009 (Belgium)
Change in Accounting Policy – Operating Segments
Anheuser-Busch InBev – 31 December 2009 (Belgium)
Accounting Policy Note – Operating Segments
Anheuser-Busch InBev – 31 December 2009 (Belgium)
Note to the Financial Statements – Operating Segments (extract from note)
Zeltia Group – 31 December 2009 (Spain)
Standard Modification Adopted by the Group – Operating Segments
Zeltia Group – 31 December 2009 (Spain)
Accounting Policy Note – Operating Segments
Zeltia Group – 31 December 2009 (Spain)
Note to the Financial Statements – Operating Segments
Anheuser Busch
Anheuser Busch
Zeltia Plc
Zeltia Plc
Zeltia Plc
Case Study Getfit Plc
Case Study Getfit Plc
Case Study Getfit Plc solution
Case Study Getfit Plc solution
IFRS 2 Share Based Payment
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Share options popular form of employee
remuneration
Definition
Share based payment
Equity settled share transactions
Cash settled share transactions
IFRS 2 Share Based Payment
Accounting for Equity Settled Transactions
Measure at fair value date of grant
Use Black Scholes, Binomial Lattice, Monte Carlo Simulation models
Alter estimate of employees likely to be still working for entity at date of
vesting and reestimate at every year end
Charge to income statement over the vesting period and credit equity
reserves
If exercise cancel reserves and credit Share Capital and Premium
appropriately
If do not exercise by date of expiry transfer option reserve to retained
earnings
IFRS 2 Share based payment
Example – equity-settled transaction
On 1 January 2008, Snow Ltd issues 200 share options to each of its 1,000
members of staff. The vesting period for the options is 3 years and the fair
value of the options at the grant date is 5. Expected employee turnover is
estimated at 5% per annum.
On 31 December 2009, the company revises its estimate of employee
turnover to 8% per annum.
On 31 December 2010, the actual employee turnover has averaged at 6%
per annum for the 3-year vesting period. Options vest as long as employees
remain with the company for the 3-year period.
Requirement
Determine the expense to be charged over the vesting period in respect
of the share options.
Solution
Year ended 31 December 2008
Total fair value of share options 1,000 x 200 x 5 x 0.95 x 0.95 x 0.95 = 857,375
Charge to Statement of Comprehensive Income 857,375 x 1/3 years = 285,792
Year ended 31 December 2009
Amended fair value of share options 1,000 x 200 x 5 x 0.92 x 0.92 x 0.92 = 778,688
Charge to Statement of Comprehensive Income 778,688 x 2/3 years = 519,125 Less
amount recognised to date
285,792
233,333
Year ended 31 December 2010
Actual value of share options 1,000 x 200 x 5 x 0.94 x 0.94 x 0.94 = 830,584
Charge to statement of comprehensive income 830,584
Less amount recognised to date
519,125
311,459
IFRS 2 Share Based Transactions
Accounting for cash settled transactions
Measure at Fair value of liability at date of grant
Remeasure at every year end
Charge to income and credit liabilities
Remeasure liability right up to date of expiry
If exercise Dr liability Cr Bank
If no exercise Dr Liability Cr Retained earnings
IFRS 2 Share Based Payment
Example – cash-settled transaction
On 1 January 2005 Storm Ltd granted 1,000 share appreciation rights (SAR) to each of its 40
managers entitling them to receive, at the date the rights are exercised, cash equal to the
appreciation in the entity’s share price since the grant date. All rights vest on 31 December
2006.
They can be exercised during 2007 and 2008. Management estimates, at the grant date, that
the fair value of each SAR is 11 and that 10% of employees will leave evenly during the two-year
period.
The fair values of the SARs at each year-end are:
31 December 2005
12
31 December 2006
8
31 December 2007
13
31 December 2008
12
10% of employees left during 2006, On 31 December 2007, 6 employees exercised their option
(at an intrinsic value of 10) On 31 December 2008, 30 employees exercised their option (at an
intrinsic value of 12)
The accounting treatment will be as follows:
Year
Expense
Liability
Calculation of liability
31 December 2005
31 December 2006
31 December 2007
216,000
72,000
162,000
216,000
288,000
390,000
36 x 1,000 x 12 x ½
36 x 1,000 x 8
30 x 1,000 x 13
Expense 390,000 – 288,000 less 60,000 (cash paid 6 x 1,000 x 10)
31 December 2007
(30,000)
Nil
Negative expense 360,000 cash paid (30 x 1,000 x 12) less
390,000 liability
IFRS 2 Share Based Payment
Accounting for Transactions Which May be Settled in Cash or
Shares (Hybrid Schemes)
Choice of entity or employee/supplier
Cash settled if liability to settle in cash
Example – hybrid schemes
An entity has granted to its management team the right to each receive 15,000 shares or a
cash payment equivalent to the value of 10,000 shares. The entity may choose the
settlement method. Accordingly, management does not consider that the entity has
established an obligation to settle in cash, and so the transaction is accounted for as an
equity-settled transaction. An expense is measured on the basis of the fair value of 15,000
shares at grant date. The corresponding credit is recognised in equity. On the settlement
date, the share price is 10. Therefore the fair value of the shares (150,000) exceeds the fair
value of the cash (100,000). If the entity chooses to settle the transaction in cash, the
resulting payment of 100,000 is deducted from equity and treated as a re-purchase of
shares. If the entity chooses to settle the transaction with shares, the excess of the fair value
of the shares over the cash (50,000) is recognised as an expense.
IFRS 2 Share Based Payment
Example – vesting period
An entity grants options to its employees with a fair value of 300,000.
In the case of no vesting period, the accounting treatment will be as follows:
Year 1 Dr Expense 300,000 Cr Liability
In the case of a vesting period, the options may vest in three years’ time the
condition being that the employees remain in employment for that period.
Assuming that all of the options do vest (no employees leave the entity) the
accounting treatment will be as follows:
Years 1- 3 (charged each year) Dr Expense 100,000 Cr Liability 100,000
This will be the charge each year regardless of any subsequent movements in the
share price.
IFRS 2 Share based payment
Self Test Question
Apple Ltd
IFRS 2 Share based payment
Carrefour
Share-based payments
The Group has established two share-based payment methods designed for its managers and
certain employees: share-purchase option plans and free-share plans.
Upon transitioning to the IFRS, in accordance with the option offered under IFRS 1, the Group
elected to limit the application of IFRS 2 – Share-Based Payment, to stock-option plans paid in
shares that were allocated after November 7, 2002, the rights to which had not yet been
acquired as of January 1, 2004. This application had no effect on total shareholders’ equity as
of January 1, 2004.
By contrast, the plans granted between 2003 and 2010 fall within the scope of IFRS 2. The
benefits granted under these plans are recorded as personnel expenses, offsetting a capital
increase since the plans are paid as equity instruments. The expense recognized for each
period corresponds to the fair value of the benefits granted on the basis of the
Black-Scholes formula, on the date the share-purchase options were granted or, for the free
shares, on the basis of the market price on the date they were granted. The resulting charge is
then spread over the vesting period. In accordance with IFRS 2, acquisition conditions other
than market conditions are not taken into account when the fair value of
shares and share-purchase options are estimated on the valuation date.
SHARE-BASED PAYMENT
The charge recorded in the 2010 income statement for share-based
payments stood at 54 million euros. This charge amounted to 61 million
euros in 2009. In accordance with the IFRS 2 standard, this charge,
adjusted for tax effect, was offset by an increase in shareholders’ equity.
The share-purchase option and free-share plans established by the
Group as compensation for its managers and certain employees have
the following characteristics:
Case Study
Vidal Junction Plc
solution
Case Study Vidal Junction Plc solution
Case Study Vidal Junction Plc solution
Case Study Vidal Junction Plc
Case Study Vidal Junction Plc
solution
Case Study Vidal Junction Plc
solution
Case Study
Accra Plc
Case Study
Accra Plc
Case Study Accra Plc solution
Case Study Accra Plc solution
IAS 19 Employee Benefits
Introduction
Employee Benefits
Short term benefits
Post employment benefits
Defined contribution
Defined benefit
Termination benefits
Current service costs
Interest costs
IAS 19 Employee Benefits
Short term benefits
Wages, salaries and social security contributions;
Holiday pay and sick pay;
Profit-sharing and bonuses;
Non-monetary benefits for current employees, such as health care,
company cars, accommodation
Expensed as incurred unless part of capital item
Accrual if not paid by year end
IAS 19 Employee Benefits
Profit sharing and bonus schemes
Example
As part of a profit sharing plan, an entity agrees to pay a specified
percentage of its profit for the year to employees in the form of a bonus.
The bonus is to be paid three months after the period-end. At the end of
the reporting period, based on staff turnover, the entity calculates an
expected payment plans of 800,000 in relation to bonuses.
At the period-end, the entity will recognise a liability and an expense for
800,000.
IAS 19 Employee benefits
Post Employment benefits
Defined Contribution Schemes
Defined Benefit Schemes
IAS 19 Employee Benefits
Defined Contribution Schemes
Contributions paid expensed straight line basis
Example
Arnold Ltd has payroll costs of 1.35 million for the year ended 31 December
2010. The company has a defined contribution scheme and pays pension
contributions of 5% of salary costs each year.
During the year, Arnold Ltd paid 5,000 per month and will pay over the
balance in January 2011.
Statement of Comprehensive Income
Pension cost 1,350,000 x 5% 67,500
Statement of Financial Position
Accrued pension costs (67,500 – 60,000) 7,500
Post-Employment Benefits
IAS 19 covers 2 types of post-employment (pension) scheme
Defined contribution
schemes
Defined
benefit schemes
The entity pays agreed
contributions into a plan and
has no further liability
Any other type of scheme.
Typically a pension is
guaranteed based on final
salary
Accounted for on an
accruals basis
Accounted for using the
projected unit credit method
Defined Benefit Schemes
Defined Benefit Schemes
Scheme Assets
Scheme Liabilities
Measure at fair value at balance
sheet date
Measure at present value of
future obligations
Pension scheme surplus or deficit on balance sheet.
IAS 19 Employee Benefits
Actuarial gains and losses
Actuarial gains and losses can result from increases or decreases in
the present value of plan liabilities or increases or decreases in the
fair value of plan assets. Causes include:
•
•
•
•
•
unexpectedly high or low rates of employee turnover;
early retirement or mortality;
salary increases;
changes in discount rates;
differences between actual and expected return on plan assets
IAS 19 Employee Benefits
Determining actuarial gains and losses
Actuarial gains and losses in respect of plan assets or plan liabilities are calculated
as follows:
Plan assets
‘000
Fair value at start of period
XX Market valuations should be carried out regularly
Expected return
XX Expected increase in fair value of plan assets
during period
Contributions made
XX Amounts contributed by employer and employees to plan
Benefits paid
(XX) Amounts paid out from pension fund in current year to
pensioners, thus reducing value of remaining assets
Actuarial gain/(loss)
X/(X) Balancing figure
Fair value at end of period XX
IAS 19 Employee Benefits
Plan liabilities
Present value at start of period
Current service cost
Interest cost
Benefits paid
Actuarial (gain)/loss
Present value at end of period
‘000
XX Accumulated pension benefits earned by past
and present employees in return for services to
date, which will be payable in the future
XX Extra pension benefits earned by employees in
return for services in current period. Estimated
by a qualified actuary - affected by mortality
rates, future salaries, etc.
XX Increase in the present value of future
obligations during the current period (‘unwinding
the discount’)
Arises because the pension benefits for
employees are now one year closer to being paid
(XX) Amounts paid out from pension fund in current
year, thus reducing future liability of the plan as
recipients are one more year into their retirement
X/(X) Balancing figure
xx
Scheme Assets & Liabilities
Present value of defined benefit obligation
At 1 January
Interest cost
Current service cost
Benefits paid
Actuarial loss (balancing figure)
At 31 December
£m
1,990
158
170
(212)
34
2,140
Fair value of plan assets
At 1 January
Expected return
Contributions
Benefits paid
Actuarial loss (balancing figure)
At 31 December
£m
1,827
180
128
(212)
(423)
1,500
IAS 19 Employee Benefits
Accounting for actuarial gains and losses
IAS 19 offers the following choice of accounting treatments for
actuarial gains and losses. It is expected that the method chosen will
be applied consistently for all defined benefit plans.
• immediate recognition of actuarial gains and losses as a ‘defined
benefit expense’;
• immediate recognition of actuarial gains and losses as ‘other
comprehensive income’;
• any systematic method that results in faster recognition of actuarial
gains and losses; or
• recognition of a ‘portion’ of actuarial gains and losses using the
‘corridor method’.
IAS 19 Employee Benefits
I
The corridor method
In the long term, actuarial gains and losses may offset one another.
Therefore, the standard permits an entity to carry forward a modest
amount of the actuarial gains or losses.
IAS 19 requires entities to recognise, as a minimum, a specified portion of
the actuarial gains or losses that fall outside a ‘corridor’ of plus or minus
10%.
Actuarial gains or losses which do not exceed 10% of the present value of
the plan liabilities, and also do not exceed 10% of the fair value of the plan
assets, may be carried forward as part of the defined benefit liability.
Gains and losses outside this 10% ‘corridor’ must be recognised as
follows:
recognised in the Statement of Comprehensive Income over average
remaining service life of current employees; or
recognised in the Statement of Comprehensive Income over a shorter
period, provided it is systematic.
IAS 19 Employee Benefits
Presentation of a defined-benefit plan
Statement of Comprehensive Income
The amount of the defined-benefit expense which is recognised in the
Statement of Comprehensive Income is determined as follows:
Recognised current (and past) service cost
Interest cost
Expected return on plan assets
Recognised actuarial (gains)/losses
Employee contributions during period
Defined-benefit expense
‘000
xx
xx
(xx)
(x)/X
(xx)
XX
IAS 19 Employee Benefits
Statement of Financial Position
The amount of the defined-benefit asset/liability which is recognised in the
Statement of Financial Position is determined as follows:
Fair value of plan assets
Present value of plan liabilities
Past service cost not yet recognised
Net unrecognised actuarial gains
Net unrecognised actuarial losses
Pension asset/(liability)
‘000
XX
(XX)
(XX)
XX
(XX)
XX
Offsetting of assets and liabilities is not normally permitted
Example – defined-benefit plan
Arc Ltd operates a defined-benefit scheme for its employees. The plan
is reviewed on an annual basis. The company’s actuaries have provided
the following information:
31 December 31 December 2010
2009 ’000
2010 ’000
Fair value of plan assets
10,000
12,000
Present value of plan liabilities
10,000
14,000
Current service cost – y/e 31 December 2010 1,500
Contributions paid – y/e 31 December 2010
1,000
Benefits paid – y/e 31 December 2010
1,200
Unrecognised losses at 1 January 2010
2,000
Expected return on plan assets at 1 January 2010
8%
Discount rate for plan liabilities at 1 January 2010
10%
Average remaining working lives of employees
20 years
Requirement
Prepare extracts of Arc’s financial statements for the year ended
31 December 2010 assuming the company applies the corridor
method to unrecognised actuarial gains and losses.
IAS 19 Employee Benefits
IAS 19 Employee Benefits
IAS 19 Defined Benefit Plans (June 2011)
1. Immediate recognition of DB cost
Problems – asset if deficiency
- G/L in SOCI previous years
- no comparison across companies
Proposal - Abolish corridor and other spreading
options
- Permit ONLY immediate write off
IAS 19 Defined Benefit Plans (June 2011)
2. Presentation
Problems – Interest different positions
- Actuarial G/L different periods
- Previous year G/L recognised current
Proposals - Service cost P/L
- Finance cost – finance costs in P/L
- Remeasurement – Other CI
IAS 19 Defined Benefit Plans (June 2011)
3.Disclosure
Problems - Too much
- Not highlighting risks in DB plans
Proposal – Improved disclosure
Characteristics of DB Plans
Amounts in the financial statements
Risks in defined benefit plans
Participation in multi employer plans
IAS 19 Employee Benefits
Other Long-Term Employee Benefits
Other long-term employee benefits include:
•
•
•
•
•
long-term leave or sabbatical leave;
jubilee or other long-term benefits;
long-term disability benefits;
profit-sharing and bonuses payable after more than 12 months;
deferred compensation payable after more than 12 months.
IAS 19 Employee Benefits
Accounting treatment for other long-term employee benefits
The entity shall recognise as a liability at the end of the reporting period
the present value of accumulated benefits to which the employees are
entitled in return for services to date, less the fair value of any plan assets.
The entity shall recognise as income or expense the following amounts:
– current service cost;
– interest cost;
– expected return on any plan assets or any reimbursement right recognised as
an asset;
– actuarial gains and losses, which shall be recognised immediately – no
corridor is applied
IAS 19 Employee Benefits
Termination Benefits
The entity shall recognise termination benefits as a liability and as an expense
when the entity is demonstrably committed to either:
•
•
terminating the employment of an employee before the normal retirement date;
or
providing termination benefits as a result of an offer made in order to
encourage voluntary redundancy.
An entity is demonstrably committed when the entity has a detailed formal plan
for the termination and is without realistic possibility of withdrawal. The detailed
plan should include:
•
•
•
location, function, and approximate number of employees whose services are
to be terminated;
termination benefits for each job classification or function; and
time at which the plan will be implemented.
IAS 19 Employee Benefits
Accounting treatment for termination benefits
The liability must be discounted to present value if the benefits fall due
more than 12 months after the period end.
Where an offer is made in order to encourage voluntary redundancy, the
amount of termination benefits included are based on the number of
employees expected to accept the offer
IAS 19 Employee Benefits
Disclosures
There are a significant number of disclosures required by an entity in relation to
defined benefit plans. They include:
•
•
•
•
•
•
•
•
•
the entity’s accounting policy for recognising actuarial gains and losses;
a general description of the type of plan;
a reconciliation of opening and closing balances of the present value of the definedbenefit obligation;
an analysis of the defined-benefit obligation into amounts arising from plans that are
wholly unfunded from plans that are wholly or partly funded;
a reconciliation of the opening and closing balances of the fair value of plan assets;
a reconciliation of the present value of the defined-benefit obligation and the fair
value of the plan assets to the assets / liabilities in the SOFP;
the total amounts in respect of current service cost, interest costs, expected return
on plan assets, recognised in profit or loss for various items;
the total amount of actuarial gains and losses recognised in other comprehensive
income;
the principal actuarial assumptions used as at the end of the reporting period.
IAS 19 Employee Benefits
Self Test Question
Frames Ltd
Frames Ltd operates a defined benefit scheme for its employees. The expected
average remaining working lives of employees is 12 years. The directors have
provided the following information for the current year 30 June 2009:
• the actuarial cost of providing benefits in respect of employees’ service
for the year ended 30 June 2009 was 80m (i.e. present value of pension
benefits earned by employees in the year);
• the pension benefits paid to former employees in the year were 84m;
• the present value of the obligation to provide benefits to current and
former employees was 6,000m at 30 June 2008 and 6,750m at 30 June
2009;
• Frames Ltd paid 40m contributions during the year into the fund;
• the fair value of the plan assets was 5,800m at 30 June 2008 and 6,340m
at 30 June 2009;
• The actuarial gains recognised at 30 June 2008 were 672m.
IAS 19 Employee Benefits
With effect from 1 July 2008, the company had amended the plan so that the
employees were now provided with an increased pension entitlement. The
benefits became vested immediately and the actuaries computed that the present
value of the cost of these benefits at 1 July 2008 was 250m.
The discount rates and expected rates of return on the plan assets were as
follows:
30 June 2008
30 June 2009
Discount rate
6%
7%
Expected rate of return on plan assets
8%
9%
Requirement
Prepare extracts of Frames Ltd’s financial statements for the year ended 30
June 2009 assuming that the company recognises all actuarial gains and
losses immediately in the Statement of Comprehensive Income.
IAS 19 Employee Benefits
Solution
Statement of Comprehensive Income (extract)
Current service cost
Interest cost (6,000 x 6%)
Expected return on plan assets (5,800 x 8%)
Past service cost
Recognised actuarial loss (W1)
Defined-benefit expense
‘000
80
360
(464)
250
24
250
IAS 19 Employee Benefits
W1
Plan assets
‘000
5,800
Balance @ 1 July 2008
Interest cost (6,000 x 6%)
Past service cost
Current service cost
Benefits paid
(84)
Expected return on assets (5,800 x 8%) 464
Employer contributions
40
Actuarial gain / (loss)
120
Balance @ 30 June 2009
6,340
Plan liabilities
‘000
(6,000)
(360)
(250)
(80)
(144)
(6,750)
SoCI
‘000
360
250
80
84
(464)
24
IAS 19 Employee Benefits - Disclosure SABC
(n) Employee benefits
(i) Defined benefit pension plans
The net obligation in respect of defined benefit pension plans is calculated by
estimating the amount of future benefits that employees have earned in return for
their service in the current and prior periods; that benefit is discounted to
determine its present value, and any unrecognised past service cost and the
fair value of any plan assets are deducted. The discount rates used were the
following: yield on Government Stock, the zerocoupon yield curve provided by the
South African Bond Exchange that have maturity dates approximating the terms of
the Group’s obligations.
When the benefits of a plan improve, the portion of the increased benefit relating
to past service by employees is recognised as an expense in profit or loss on a
straight-line basis over the average period until the benefits become vested. To
the extent that the benefits vest immediately, the expense is recognised
immediately in profit or loss.
IAS 19 Employee Benefits – Disclosure SABC
Actuarial gains and losses arising from experience adjustments, and changes
in actuarial assumptions, are recognised out of profit or loss as other
comprehensive income, (refer to note 5). These defined benefit pension plans
liabilities or assets, are valued annually by independent qualified actuaries.
Where the calculation results in a defined benefit, the recognised asset is
limited to the net total of any unrecognised actuarial losses and past service
costs and the present value of any future refunds from the plan or reductions in
future contributions to the plan. No asset is recognised if future refunds from
the plan or reductions in future contributions are uncertain.
IAS 19 Employee Benefits – Disclosure SABC
(ii) Other post-employment benefit obligations
The Group provides a subsidy for medical aid contributions payable by those
employees who elect to remain on the medical aid scheme after retirement. The
entitlement to these benefits is usually conditional on the employee remaining in
service up to normal retirement age or the completion of a minimum service
period in the event of early retirement. The expected costs of these benefits
are accrued over the period of employment using an accounting methodology
similar to that used for the defined benefit pension plan. This liability relating to
post-employment medical benefits is valued annually by independent qualified
actuaries. This practice of post-retirement medical aid contribution was
discontinued for all new employees after 1 July 2004. Actuarial gains and losses
arising from experience adjustments and changes in actuarial assumptions, are
recognised out of profit or loss and recognised in the statement of
comprehensive income, (refer note 5).
IAS 19 Employee Benefits – Disclosure SABC
(iii) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted
basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under
short-term cash bonus or profit-sharing plans if the Group has a present
legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated
reliably.
IAS 19 Employee Benefits – Disclosure SABC
IAS 19 Employee Benefits – Disclosure SABC
IAS 19 Employee Benefits – Disclosure Ceylon Breweries
IAS 19 Employee Benefits – Disclosures Ceylon Breweries
IAS 33
Earnings Per Share
Introduction
Basis of P/E Ratio
Consistency
Basic and Diluted
Listed companies only
IAS 33 Earnings Per Share
Basic EPS is calculated as follows:
Profit attributable to ordinary shareholders*
Weighted average number of ordinary shares outstanding** during period
• Profit for the period after tax, preference dividends and non-controlling
interest
** Shares are outstanding as from date on which they are issued
Basic EPS must take account of shares issued during the period, bonus
issues of shares during the period and rights issues of shares during the
period.
IAS 33 Earnings Per Share
Shares issued during period
The weighted average number of ordinary shares outstanding during the period can be
determined as follows:
Number of ordinary shares outstanding at the start of the period
+ Number of ordinary shares issued during the period 3 months held
- Number of ordinary shares bought back during the period 3 months not held
Example – determining weighted-average number of shares
On 1 January 2010 a company’s issued share capital consisted of 60,000 ordinary 1 shares
• 1 March 2010 - company issued 30,000 ordinary shares;
• 1 October 2010 - company bought back 10,000 ordinary shares;
• both the share issue and the buy-back were made at full market price.
Calculate the weighted-average number of ordinary shares outstanding during the year to 31
December 2010
Solution
Weighted-average number of ordinary shares outstanding during year
= 60,000 + (30,000 x 10/12) – (10,000 x 3/12) = 82,500
IAS 33 Earnings Per Share
Example - basic earnings per share
A company’s profit after tax for the year to 31 July 2010 was 3.8 million. The
comparative figure for the year to 31 July 2009 was 3.6 million. The company’s
issued share capital at 1 August 2008 consisted of 4 million ordinary shares of
0. 50. No shares were issued during the year to 31 July 2009 but a further 1
million ordinary shares were issued (at full market price) on 1 November 2009.
Calculate the company’s basic EPS for the years to 31 July 2009 and 2010.
Solution
Weighted average number of ordinary shares outstanding during the year to 31
July 2010 = 4,000,000 + (1,000,000 x 9/12) = 4,750,000
Basic EPS for y/e 31 July 2009 = 3,600,000 + 4,000,000 = 90p
Basic EPS for y/e 31 July 2010 = 3,800,000 ÷ 4,750,000 = 80p
IAS 33 Earnings Per Share
Example – bonus issue
A company’s profit after tax for the year to 30 June 2010 was 2.2 million. The
comparative figure for the year to 30 June 2009 was 2 million. The company’s
issued share capital at 1 July 2008 consisted of 800,000 ordinary shares. No
shares were issued during the year to 30 June 2009. A 1 for 4 bonus issue was
made on 1 March 2010. Calculate the company’s basic EPS for the year to 30
June 2010 and the restated comparative figure for the year to 30 June 2009.
Solution
Treat bonus issue as if made on 1 July 2008 - therefore assume 1,000,000
shares o/s in both years
Basic EPS for y/e 30 June 2010
Restated basic EPS for y/e 30 June 2009
2,200,000 ÷ 1,000,000 = 2.20
2,000,000 ÷1,000,000 = 2.00
IAS 33 Earnings Per Share
If a rights issue is made at less than full market price, which is often the case, the
issue must be split into two elements – a bonus element and an issue at full market
price.
It is necessary to calculate the ‘theoretical’ market price per share after the rights
issue – known as ‘theoretical ex-rights price’.
Example – rights issue
A company’s profit after tax for the year to 31 March 2010 was 351,000. The
comparative figure for the year to 31 March 2009 was 288,000. Issued share
capital at 1 April 2008 consisted of 100,000 ordinary shares. No shares were issued
during the year to 31 March 2009 but a 1 for 2 rights issue was made on 1 October
2009 at 0.60 per share. The market value of the company’s shares just before this
rights issue was 1.20 per share. Calculate the company’s basic EPS for the year to
31 March 2010 and the restated comparative figure for the year to 31 March 2009.
IAS 33 Earnings Per Share
Solution
Theoretical ex-rights price
No. shares
Before rights issue
2
Rights issue
1
After rights issue
3
Theoretical ex-rights price
3.00/3 = 1.00
Rights issue of 50,000 shares @ 0.60 = 30,000
Equivalent to:
30,000 shares @ 1.00 = 30,000
20,000 shares @ nil =
0 (bonus element)
•
•
2.40
0.60
3.00
Treat bonus element (20,000 shares) as if made at start of previous year. Therefore total
number of shares for the year to 31 December 2009 = 120,000 shares
Weighted average no. ordinary shares for y/e 31 March 2010 120,000 + (30,000 x 6/12)
= 135,000 shares
Restated basic EPS for year to 31 March 2009 288,000 ÷120,000 = 2.40
Basic EPS for year to 31 March 2010
351,000 ÷ 135,000 = 2.60
IAS 33 Earnings Per Share
Diluted EPS represents the EPS which would arise if all ‘dilutive potential
ordinary shares’ were issued. If the issue of potential ordinary shares would
increase EPS, the shares are said to be ‘anti-dilutive’ and are ignored.
Examples of potential ordinary shares include:
• convertible loan stock,
• convertible preference shares; and
• share options.
IAS 33 Earnings Per Share
The following adjustments are required in calculating diluted EPS:
• adjust earnings for after-tax effects of any changes in income or
expenses, e.g. increased earnings due to no longer paying interest on
convertible loan stock; and
• increase the weighted-average number of ordinary shares to
reflect the maximum number of additional ordinary shares that
would become outstanding if all dilutive potential ordinary shares were
issued (at the most advantageous conversion rate for holders). These
shares are treated as if issued at the start of the year.
IAS 33 Earnings Per Share
Example - convertible loan stock
A company’s issued share capital consists of 8 million ordinary shares. The
company’s after-tax profit for the year to 30 September 2010 is 2 million. In
2007, the company issued 10 million of 8% convertible loan stock. This stock
is convertible into ordinary shares during 2013 at the rate of 1 ordinary share
per 5 of loan stock. A tax rate of 30% may be assumed.
Requirement
a) Calculate basic EPS for the year to 30 September 2010.
b) Determine whether potential ordinary shares are dilutive or antidilutive and calculate diluted EPS for the year.
c) Explain how the situation would differ if the loan stock attracted
interest at 6% rather than 8%.
IAS 33 Earnings Per Share
Solution
a) Basic EPS
2m/8m shares = 0.25
a) Interest saved if all loan stock converted 800,000 Extra after-tax profits
560,000 (800,000 less 30%)
There would be 2m extra shares, and so incremental EPS would be 0.28
(560,000/2m shares).
As this exceeds basic EPS, the potential ordinary shares are anti-dilutive
and can be ignored. Therefore, diluted EPS = basic EPS.
c) Extra after-tax profits 420,000 (600,000 less 30%)
Diluted EPS 2,420,000 ÷ 10,000,000 = 0.242
Note: Incremental EPS would be 0.21 (420,000/2,000,000), i.e. dilutive
IAS 33 Earnings Per Share
Example – share options
A company’s issued share capital consists of 5 million ordinary shares. The
company’s after-tax profit for the year to 31 December 2010 is 2.6 million.
Share options exist which, when exercised, would result in the issue of a
further 400,000 ordinary shares at a price of 1 per share. The current
market value per ordinary share is 5.
Requirement
Calculate basic and diluted earnings per share for the year to 31
December 2010.
IAS 33 Earnings Per Share
Solution
Basic earnings per share 2.6 million/5 million shares = 0.52
Diluted earning per share
Share option exercised: 400,000 shares @ 1 = 400,000
Equivalent to: 80,000 shares @ 5 = 400,000 (non-dilutive, ignore)
320,000 shares @ nil = 0
Diluted EPS
2.6 million/5.32 million shares = 0.489
IAS 33 Earnings Per Share
Example – ranking dilutive securities
Calculate diluted EPS from the following information for the year ended 31 December 2007:
Profit after tax and non-controlling interest
18,160,000
Number of ordinary shares of 1
40,000,000
Average fair value for year of ordinary shares
1.50
Share options outstanding at 31 December 2007
2,000,000
6% Convertible bonds at 31 December 2007
20,000,000
10% Convertible preference shares
1,600,000
Notes:
1. Share options entitle owners to subscribe for ordinary shares at 1.20 per share between
2008 and 2009
2. The bonds may be converted as follows (per 200 nominal value of bond):
Conversion date No of shares
31 May 2008
23
31 May 2009
22
3. Convertible preference shares can be converted into two ordinary shares in 2009.
4. The tax rate is 33%
IAS 33 Earnings Per Share
IAS 33 Earnings Per Share
Presentation of Earning per Share
Basic and diluted EPS must be presented on the face of the Statement of
Comprehensive Income, even if they are negative. Comparative figures must
also be presented.
Where there are discontinued operations, an entity should also calculate the
following ratios:
• basic and diluted EPS based on profit from continuing operations
(presented on the face of the Statement of Comprehensive Income);
and
• basic and diluted EPS based on profit from discontinued operations
(presented on the face of the Statement of Comprehensive Income or
in the notes to the financial statements)
IAS 33 Earnings Per Share
Disclosures
The following disclosures must be made:
•
the amounts used for earnings in calculating basic and diluted EPS and a
reconciliation of those amounts to profit or loss for period;
•
the weighted-average number of ordinary shares used to calculate basic and
diluted EPS;
•
financial instruments which give potentially dilute EPS but were not included in
the calculation of diluted EPS because they are anti-dilutive for the period
presented; and
•
a description of the ordinary share transactions or potential ordinary share
transactions that occur after the period end and would have significantly affected
the calculation of EPS if they had occurred before the end of the reporting
period.
IAS 33 Earnings Per Share
Flint Plc
IAS 33 Earnings Per Share
Flint Plc
IAS 33 Earnings Per Share
Flint Plc
IAS 33 Earnings Per Share -
Flint PLC Solution
IAS 33 Earnings Per Share -
Flint PLC Solution
IAS 33 Earnings Per Share Flint Plc - Solution
IAS 33 Earnings Per Share
Fosters Group
IAS 33 Earnings Per Share
Abertis
Case Study Marcus Plc
Case Study Marcus Plc solution
Case Study Marcus Plc
solution
Case Study Marcus Plc
solution
Module 5
Learning outcomes
Module 5
Learning Outcomes