CAF-6 · Chapter 11 · Question 14 of 15
What is the primary objective of IAS 33 Earnings Per Share?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To improve performance comparisons between different entities in the same reporting period.
Explanation
The primary objective of IAS 33 is to prescribe principles for determining and presenting EPS to improve performance comparisons between different entities, and between different periods for the same entity.
More IAS 33 Earnings per share MCQs
- 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?
- Q4A 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…
- Q5Which of the following is considered a 'potential ordinary share'?