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Hi Chris
https://opentuition.com/acca/sbr/earnings-per-share-ias-33-acca-sbr-lectures/
I hope you are well. Regarding the above lecture relating to the Basic Earnings per share, at around 3:20 minutes/seconds of the above video, you said that we may need to make adjustments to the profit figure depending on whether there are any preference shares dividends and if they are redeemable or irredeemable. Can you explain what you mean here specifically? Thanks in advance.
Kind regards
James
Redeeemable prefs – would already be classified as liabilities / with interest expense in P&L – no adjustment needed
Irredeemable prefs – classified as equity – so deduct dividend from P&L earnings
More likely to be tested in FR.
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