CAF-6 · Chapter 11 · Question 4 of 15
A company issues a 1-for-4 bonus issue during the year. How should this be treated in the calculation of the weighted average number of shares for basic EPS?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Treated as if it had occurred at the beginning of the earliest period presented.
Explanation
A bonus issue does not bring in new resources. It is treated retrospectively, as if the shares had always been in issue from the beginning of the earliest period presented.
More IAS 33 Earnings per share MCQs
- Q6When calculating the weighted average number of shares, when are shares issued for cash generally included?
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