The International Accounting Standards Board (IASB) issued an exposure draft on Simplifying earnings per share (proposed amendments to IAS 33) in August 2008.
The proposals are part of a short-term convergence project undertaken jointly with the US Financial Accounting Standards Board (FASB). As a result, the FASB has also published an exposure draft to amend SFAS 128 Earnings per share.
The exposure draft's proposals include:
- providing a clear principle to determine which shares and instruments should be included in the earning per share (EPS) calculation
- clarifying the EPS calculation for particular instruments such as contracts to sell or repurchase the entitys own shares and participating instruments
- simplifying the EPS calculation for instruments that are accounted for at fair value through profit or loss
The Australian Accounting Standards Board (AASB) is expected to expose the proposed amendments to IAS 33 shortly.
Members are invited to submit their comments on the proposals to professionalstandards@cpaaustralia.com.au
CPA Australia will make a submission on behalf of members.
To view the exposure draft visit the IASB website.
