Just as a starter, two definitions!
The objective of IAS 33 Earnings per share is prescribing principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity.
- whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or
- that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing ordinary shares in a
For any given asset, the value to the business basis of measurement tries to answer the question:
How much worse off would the business be if it were deprived of it?
The answer, as a rule, is given by the asset’s replacement cost. For a liability, value to the business measures how much better off the business would be if it were relieved of it.
Because there are markets for only a proportion of the assets held by companies in the age and condition in which they exist at the balance sheet date, there is often no price available for a comparable replacement asset. For this reason, it is usual in practice to calculate replacement cost by taking the … Read more
The line items from ‘Revenue’ to ‘profit for the year’ should therefore include continuing operations only. The figure for discontinued operations should include the post tax gain or loss on disposal of the assets of the operation (if sold) or the gain or loss on re-measurement following transfer to ‘held for sale’ (if relevant).
If no assets are sold or to be sold this will not be relevant. The breakdown of the profit or loss from discontinued operations (into revenue, expenses, tax etc.) is provided … Read more