Although earnings per share is a very popular performance measurement tool, it is not without its drawback and limitations. Here are four important drawbacks you should know for your IAS 33 EPS studies.
Preparing consolidated financial statements can be stressful. It can be difficult to visualise exactly what to do, and where the journal entries to bring everything together should go.
What are accounting policies?
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. This article contains some useful information for your IFRS studies.
Departure from accounting standards
In very rare circumstances, an entity may need to produce financial reports which do not comply with a specific accounting standard, if compliance with the standard would be so misleading they do not provide useful information to users, and the financial statements would no longer be fairly presented.
When we look at the statement of comprehensive income, the costs associated with the leased asset held under a finance lease will be:
The calculation of basic EPS is a little bit trickier when new shares have been issued during the financial year.
Non-current assets are usually measured in the financial statements at cost or a revalued amount, which is depreciated over the asset’s useful economic life.