Question
Harlow Instruments: build an IFRS statement of profit or loss and other comprehensive income — profit by function, OCI split into items that will and may be reclassified, each net of tax, and basic EPS.
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
IAS 33 — Earnings per Share
Basic EPS is profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares outstanding. Both halves need care: the numerator is after preference dividends, and the denominator weights each share issue by the fraction of the year it was outstanding.
Common mistakes
- Using the closing share count instead of the weighted average.
- Failing to deduct preference dividends from profit before dividing.
- Time-weighting a bonus issue or share split — these are treated as though they existed for the whole of every period presented, including comparatives.
Further readingIAS 33: basic and diluted EPS