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ACCA Strategic Professional · Strategic Business Reporting (International) · Presentation and disclosure in financial statements

Under IAS 33, in which situation must an entity present basic and diluted EPS in the consolidated financial statements?

A publicly traded parent must present basic and diluted EPS in its consolidated statements, using profit attributable to the parent's ordinary equity holders. IAS 33 applies only to entities with publicly traded or soon-to-be-traded ordinary shares, and non-controlling interests' share of profit is excluded from the earnings figure.

  1. AA parent whose ordinary shares are publicly traded, presenting EPS based on consolidated profit attributable to the parent's ordinary equity holdersCorrect
  2. BA subsidiary wholly owned by a listed parent, presenting EPS based on its own profit
  3. CA parent whose shares are privately held, as EPS is required for all entities
  4. DA listed parent, presenting EPS based on total consolidated profit including non-controlling interests

Explanation

IAS 33 applies to entities whose ordinary shares are publicly traded or that are filing to issue them. In consolidated statements, EPS uses profit attributable to the parent's ordinary equity holders, so profit attributable to non-controlling interests is excluded. Including NCI share is wrong.

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