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Commission Regulation (EC) No 2238/2004 of 29 December 2004 amending
Regulation (EC) No 1725/2003 adopting certain international
accounting standards in accordance with Regulation (EC) No 1606/2002
of the European Parliament and of the Council, as regards IASs IFRS 1,
IASs Nos 1 to 10, 12 to 17, 19 to 24, 27 to 38, 40 and 41 and SIC
Nos 1 to 7, 11 to 14, 18 to 27 and 30 to 33
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Disclosure
70. An entity shall
disclose the following:
(a) the amounts used
as the numerators in calculating basic and diluted
earnings per share, and a reconciliation of those
amounts
to profit or loss attributable to the parent entity for
the period. The reconciliation shall include the
individual effect of each class of instruments
that affects earnings per share.
(b) the weighted
average number of ordinary shares used as the denominator
in calculating basic and diluted earnings per share,
and a reconciliation of these denominators to each
other.
The reconciliation shall include the individual effect
of each class of instruments that affects earnings per
share.
(c) instruments
(including contingently issuable shares) that could
potentially dilute basic earnings per share in the future,
but were not included in the calculation of diluted
earnings per share because they are antidilutive
for the period(s) presented.
(d) a description of
ordinary share transactions or potential ordinary
share transactions, other than those accounted for
in
accordance with paragraph 64, that occur after the
balance
sheet date and that would have changed significantly
the
number of ordinary shares or potential ordinary shares
outstanding at the end of the period if those
transactions had occurred before the end of the
reporting period.
71. Examples of
transactions in paragraph 70(d) include:
(a) an issue of
shares for cash;
(b) an issue of
shares when the proceeds are used to repay debt or preference
shares outstanding at the balance sheet date;
(c) the redemption
of ordinary shares outstanding;
(d) the conversion
or exercise of potential ordinary shares outstanding at the
balance sheet date into ordinary shares;
(e) an issue of
options, warrants, or convertible instruments; and
(f) the achievement
of conditions that would result in the issue of contingently
issuable shares.
Earnings per share
amounts are not adjusted for such transactions occurring after
the balance sheet date because such transactions do not affect
the amount of capital used to produce profit or loss for the
period.
72. Financial
instruments and other contracts generating potential ordinary
shares may incorporate terms and conditions that affect the
measurement of basic and diluted earnings per share. These
terms and conditions may determine whether any potential
ordinary shares are dilutive and, if so, the effect on the
weighted average number of shares outstanding and any
consequent adjustments to profit or loss attributable to
ordinary equity holders. The disclosure of the terms and
conditions of such financial instruments and other contracts
is encouraged, if not otherwise required (see IFRS 7:
Financial Instruments: Disclosures).
73. If an entity
discloses, in addition to basic and diluted earnings per
share, amounts per share using a reported component of the
income statement other than one required by this
Standard, such amounts shall be calculated using
the weighted average number of ordinary shares
determined in accordance with this Standard. Basic and
diluted amounts per share relating to such a component shall
be disclosed with equal prominence and presented
in the notes to the financial statements. An
entity shall indicate the basis on which the numerator(s)
is (are) determined, including whether amounts per share
are before tax or after tax. If a component of the income
statement is used that is not reported as a line item in
the income statement, a reconciliation shall be
provided between the component used and a line
item that is reported in the income statement.
Effective Date
74. An entity shall
apply this Standard for annual periods beginning on or
after 1 January 2005. Earlier application is encouraged. If an
entity applies the Standard for a period beginning
before 1 January 2005 it shall disclose that
fact.
Withdrawal of Other
Pronouncements
75. This Standard
supersedes IAS 33 Earnings Per Share (issued in 1997).
76. This Standard
supersedes SIC-24 Earnings Per Share—Financial Instruments
and Other Contracts that May Be Settled in Shares.
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