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June 3, 2016 at 1:38 am
Hi Mike, little confused, can I ask why the second loan stock (PES 3m/PEE $300300) was omitted from the diluted EPS calculation?
June 3, 2016 at 7:28 am
That’s the one with the anti dilutive effect… you’re to ignore that.
May 29, 2016 at 1:11 pm
when calculating the saving on convertible loan, why do we minus the tax? aren’t we saving the tax too?
June 3, 2016 at 7:27 am
You can’t earn more and save on tax.. with the increased earning, comes increased tax liability.
April 20, 2016 at 12:39 pm
Hi Mike! Just wanted to say thank you for the great lectures! Your recap of F7 at the beginning was a great start to P2, especially for those of us who have had a gap between exams! Having to study without classroom lectures and study support was really daunting but your lectures have been a massive help! Very grateful!
December 12, 2015 at 4:49 am
don’t you have lectures ahead of chapter 16???
December 12, 2015 at 5:48 pm
No. Something had to give and it was the topics in those later chapters. I’m working on it!
December 15, 2015 at 1:11 pm
alright sir, when are those changed lectures expected ??
December 15, 2015 at 2:02 pm
Don’t hold your breath
November 24, 2015 at 8:40 pm
hi sir…. i want to ask ..when you upload the intelligent guess of P2 …….??
November 24, 2015 at 8:51 pm
I’ve just answered this question on another forum! Opentuition is not making guesses for December because we have no idea what was asked in September!
November 15, 2015 at 10:56 pm
thanks for these lectures.
I have one confusion when dealing with PES for loan
we accounted for the loan interest as a PEI,
However the face value ie 400,000 in the first scenario
that is assumed to be converted into shares
so wouldnt we assume that we recieved 400,000 for the shares we issued, and calculate the free shares like we did in options.
because currently we assume that the loans would be converted into shares but we do not account for the consideration value of the loan and assume all the shares issued are free.
November 16, 2015 at 6:13 am
In the case of a loan redemption we’re issuing shares to extinguish a liability
In the option situation there is no liability to extinguish
It’s what the IAS tells us to do and how to do it!
November 11, 2015 at 7:37 pm
Dear Mr Mike thanks very much for the lectures, and for the inspiration to be a potential lecturer
November 12, 2015 at 8:53 am
November 10, 2015 at 7:02 am
In example 5 of earning per share , when making the anti-dilutive table(options) why earning were taken as 600,000 when it was 750,000
November 10, 2015 at 7:09 am
It is because we have eliminated the earnings this year from the discontinued operation?
We do this only in the calculation for dilutive / anti-dilutive and we do it because dilutions operate into the future and profits from discontinued operations will not recur after this year
October 29, 2015 at 5:08 pm
If there were lectures for those chapters, they would be on the site. We held courses that ran for just 5 days – some topics had to be sacrificed. The topics in the chapters for which there is no lecture were the sacrificial topics.
Why those? Because they are relatively easy topics for self study and because the really important topics needed video lectures
October 29, 2015 at 2:19 pm
hi sir, useful lectures, but where are more lectures for (from chapter 26 to chapter 32). I am a bit confused, would you mind please guide me.
March 20, 2015 at 7:01 am
Hello sir,what a wonderful lecture,pls am a bit confuse,I don’t really know what this anti-dilutive is all abt,I understood the calculation but don’t no why,when,what it is all abt.pls enlighten me the more pls.
March 20, 2015 at 10:21 am
Where a conversion takes place and the result is that earnings per share increases as a result of that conversion, then the eps has not been diluted – it has in fact been improved. And “been improved” in the language of IAS 33 is the same as saying anti-diluted. Think of concentrated orange juice (in the UK we call it orange squash or orange cordial)
When preparing a drink, we pour some cordial into a glass and then dilute it by adding water. The water has a dilutive effect on the orange cordial
But if we put too much water in, then the drink tastes too weak, not fruity enough. To correct that, we could add some more cordial to strengthen the taste. By adding that extra cordial, we would be correcting the effect of having added too much water so the addition of this extra cordial could be said to be anti-dilutive
March 20, 2015 at 11:58 am
Thank u so much,u are a great lecturer
March 20, 2015 at 7:05 pm
Thank you for those kind words 🙂
Did you understand my explanation of dilution of earnings and particularly the concept of anti-dilution?
March 21, 2015 at 10:09 am
December 5, 2014 at 2:58 am
Dear Mr. Mike Little, I can only wish to be a tutor like you. Brilliant and very helpful.
Just minor observation, Basic EPS in this example $750,000/4000,000=0.18 Cents, correct?
December 5, 2014 at 5:28 am
Thank you for those kind words
November 6, 2014 at 8:32 am
can you please explain me how did we compare which loan stock is more diluted as compared to the other loan stock in the ex 5
November 15, 2014 at 6:06 pm
hello sir, please can you help me with this eps ex5 … how do see that which loan stock is more dilutive ? .. do we look at the date when it was issued or we focus on the MEPS?
November 16, 2014 at 9:06 am
MEPS is the route to follow to determine which of two similar instruments is the more dilutive
November 16, 2014 at 12:53 pm
ok that means lower the MEPS, that loan stock is more dilutive?
secondly, i also wanted to ask if for example while calculation anti dilution, loan stock #1 was anti dilutive so we will stop with the option itself or do we take loan stock #2 and option for the calculation of diluted eps?
thank you sir.. you are an amazing lecturer.. not only you made p2 a ‘bit’ easier for me through the lectures lol but also you have helped a lot in solving my problems. thank you so much
November 16, 2014 at 9:15 pm
Thanks for those kind words 🙂
You need to work out (in the correct sequence) whether a loan stock conversion is dilutive or anti-dilutive
The “correct” sequence will not always be that the first loan stock conversion is less than the second so you need to calculate MEPS for both
November 17, 2014 at 5:11 am
your welcome 🙂
So that means for example while calculating anti dilution effect in “correct” sequence if i get these final figure for anti dilution effect:
b/f (control fig) 15c
loan stock 1 9.5c
loan stock 2 9.3c
so that means after this when i will calculate Diluted Eps il take the b/f shares, options and loan stock 2 in calculation and exclude the loan stock 1 as it is anti dilutive?
in the correct sequence it will always be that the second or the last one (if more loan stocks given) will be anti dilutive?
thank you sir
and also I have asked you one more ques related to IAS 41 in the ask tutor thread. please if you could help me out with that as well
thank you sir
May 13, 2014 at 12:47 am
How can I view other lectures after this chapter, I am not able to see lectures link after chapter 16 EPS.
October 16, 2014 at 9:19 pm
How can i get other lectures after EPS
October 16, 2014 at 9:48 pm
Hi, there are no further lectures after chapter 16.
May I ask you to read other posts on this thread that explain why there are no more lectures and why you need not be despondent about the “missing” topics
March 22, 2014 at 4:51 pm
Thanks again Mike.
The only problem is… EPS topic seems too easy now!
January 8, 2014 at 6:08 am
Dear little Mike, Will it be possible u can record it before june 2014 any new chapter which is not recorded as i am going to sit in next june. ur my one of the best lecture ever i met. may god Bless u always. please reoly. 🙂
January 8, 2014 at 11:51 am
Substantially all the topics in those later chapters are either F7 revision or relatively straight forward. There is a revised chapter on single company reconstruction accounting – re-written last month and a bit of an amendment to consolidations – changes in group structures chapter
Otherwise I have to rely on your own efforts for things like Revenue recognition
January 8, 2014 at 2:35 pm
So from Chapter,
17 Reconstructions 141
18 IFRS 9 Financial Instruments 153
19 IFRS 2 Share based payment schemes 159
20 Report writing and interpretation of financial statements 167
21 IAS 1 – Presentation of financial statements 173
22 IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors 175
23 IAS 24 Related parties (rps) 177
24 IAS 34 Interim financial reporting – disclosures 181
25 IAS 40 Investment properties (ip) 183
26 IAS 12 Deferred tax (dt) 189
27 IFRS 1 First Time Adoption of IFRS 197
28 Management Commentary 201
29 Small and Medium (sized) Entities – SMEs
From this chapters, will there be any video available before next june? or shall i have to work my self? and relatively straight forward what u mean is only for chapter 16 or for those other chapter?
thanx a lot mike, ur just gifted on earth n because of u people like us are understanding that we are studying. 🙂
January 23, 2014 at 7:28 am
any reply plx
January 23, 2014 at 7:42 am
Hi Hixam – sorry, but all those chapters are down to you. There are no plans at the moment to record anything from these topics
January 23, 2014 at 7:50 am
Hey Gingergirl – I am quite capable of answering my own messages, thank you.
You are correct though – as I have said before (if not on this thread, then on another) Hixam, there are no plans just yet for me to record any more lectures on these “missing” topics
January 23, 2014 at 8:05 am
Sorry Mike – its just that I’ve read on here you making that same comment so often that I thought I would save you having to write it all again.
October 16, 2014 at 9:46 pm
Hixam, if you want a reply in future, post your question on the “Ask the tutor”page
After chapter 16 there are no lectures. The lectures are recorded over 5 days – the entire length of our courses. Obviously we have to rely on students to do their own studying on those topics that are not covered in lectures. Many of the “missing” topics are F7 revision and others are relatively straight forward.
Should you have any particular issue with any of the topics, of course you can ask for an explanation but I may well respond and say, for example, “there are two good articles in Student Accountant by Tom Clendon covering all that you need to know”
There are no plans to record any new lectures in the near future but I am always here to answer your questions where you come up against any matter that you cannot fully understand
November 13, 2013 at 3:13 pm
Really wish to have some lectures over chapters 17-28, especially reconstructions and share based payments :S
You think you can have them “on time” before the December 2013 exam…? Would really be great!
November 13, 2013 at 5:08 pm
Absolutely ….no chance! Sorry but it’s not going to happen. No time and no ready access to recording facilities
January 5, 2014 at 11:23 am
sir, Will it be possible u can record it before june 2014 exam as i am going to sit in next june. ur my one of the best lecture ever i met. may god Bless u always. 🙂
October 26, 2013 at 6:20 pm
Great Lecture. I want to be a teacher like you in future.
October 26, 2013 at 8:03 pm
Well, that’s probably the greatest compliment you could give any tutor! Thank you 🙂
September 9, 2013 at 12:28 pm
great lecture. wish we could have a lecture on financial instruments: that topic is very boring to read
March 9, 2013 at 11:34 am
i have given the lecture on Eps 5 star or AAA rating. (top in OT).
bravo Mike, well explained.
gaya s. says
October 30, 2012 at 3:26 pm
October 30, 2012 at 3:50 pm
@gts7, No, surely! I was getting quite fascinated that you may be thinking of a change of gender or an age reduction, whichever gender you started with 🙂
October 31, 2012 at 1:49 am
@MikeLittle, hahaha 😀 Very funny. It was a typo actually.
And what is the explanation to my doubt?
October 31, 2012 at 11:06 am
@gts7, I’m so sorry – I answered it, but it hasn’t appeared! So here goes again.
In the working to determine whether any conversions are anti-dilutive, we ignore the earnings from the discontinued operation because it will not contribute to profits in the future and our Global Investor wants to know the situation “going forward”
However, the basic question is “What would this year’s EPS have been if all these conversions HAD in fact taken place this year and the profits from Vanuatu DID contribute to this year’s earnings figure.
Is that clear?
November 1, 2012 at 9:17 am
@MikeLittle, Very clear and concise explanation 🙂 Thank u very much Mr. Mike 🙂
October 30, 2012 at 3:24 pm
Hello Mr. Mike.
Your lecture was awesome 🙂
Bravo to Mr. Mike and Admin.
However Mr. Mike, I’d be lad if you’d clear my doubt on this:
Why is it in the final step (calculation of DEPS) the brought forward earnings are $750,000 and not $600,000 as calculated in the second last step (determining if any instruments are anti-dilutive)?
In other words why is it that the net earnings attributable to the discontinued operation of $150,000 not deducted from the $750,000?
Thank you very much 🙂
Miss A.. says
October 23, 2012 at 4:34 pm
Sir, in December 2012 P2 notes, we have $200,000 profit from discontinued operations which is included in earnings.So earnings would be 750,000 – 200,000=550,000 so EPS of equity shares b/f would be 550,000/4000,000=13.75
am i right?
October 30, 2012 at 3:48 pm
@Miss A.., No, sorry. Because “Earnings” is profit AFTER tax
November 3, 2012 at 5:29 pm
@MikeLittle, oh….i got it now….it should be 750,000-150,000=600,000
November 3, 2012 at 5:41 pm
@Miss A.., That’s it :-))
April 12, 2012 at 1:41 am
I think that Mike is doing great, great job and his tution is really above any expectations of mine. His explanations on every topic available on this site does help to understand the paper. However, because he is doing so great job and because of his briliant way of doing tution I would very much appreciate if you (opentution tutors) could put up the rest of the paper. If not the whole rest than at least those chapters containing exercises. Thank you very much, Mike
November 23, 2011 at 7:09 am
Fine! Read notes! But can’t grow up any further.
November 23, 2011 at 6:55 am
November 23, 2011 at 6:48 am
@ faip3 We are NOT sitting here on bank of lectures!! we upload what we have.
November 23, 2011 at 5:59 am
Mr. Little, Admin, Do u not think you have a constructive obligation to put up IAS 39? Being that you’ve previously put up all those stds that r critical in the exams? Are u not now obliged to provide us with 39 as well? Our expectations of u r high & based on your past behavior of uploading lectures
October 6, 2010 at 9:12 pm
brilliant lecture , i will say that the way he taught IAS 33 was awesome really gud @ above no prob with link bro just refresh n it will b fine
June 13, 2010 at 7:38 am
This link is broken too.
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