CAF-6 · Chapter 11 · Question 12 of 15
If a company undertakes a share split after the reporting period but before the financial statements are authorized for issue, how should this affect EPS?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) EPS for the current and prior periods presented must be retrospectively adjusted.
Explanation
Bonus issues and share splits occurring after the reporting period but before authorization require retrospective adjustment of per-share calculations for all periods presented.
More IAS 33 Earnings per share MCQs
- Q14What is the primary objective of IAS 33 Earnings Per Share?
- Q15Zeta Ltd reported a profit of Rs. 1,850,000 and has 1,000,000 basic shares. It also has convertible options that would add Rs. 84,000 to…
- Q1Under IAS 33, how is basic earnings per share (EPS) calculated?
- Q2How is the 'incremental earnings' calculated for a convertible bond when determining diluted EPS?
- Q3If an entity has multiple potential ordinary shares, in what order should they be considered when calculating diluted EPS?