An entity might wish to disclose additional EPS figures calculated on a level of earnings other than one that is required. Entities may disclose an additional EPS using a reported component of the statement of profit or loss and other comprehensive income.

Any additional EPS data should, however, be calculated using the weighted average number of ordinary shares determined in accordance with IAS 33. The weighted average number of ordinary shares used in the calculation of this additional EPS should be the same as the number used in the basic and diluted EPS figures required. Entities should indicate the basis on which the numerator (that is, the income statement figure) is determined, including whether amounts per share are before or after tax.

If a component of the income statement is used that is not reported as a line item in the statement of profit or loss and other comprehensive income (or income statement), a reconciliation should be provided between the component used and a line item that is reported in the statement of profit or loss and other comprehensive income.

Additional basic and diluted EPS amounts should be disclosed with equal prominence, and they should be presented in the notes to the financial statements. They should not be shown on the face of the statement of profit or loss and other comprehensive income.

Many regulators provide guidance and rules regarding the type and location of alternative performance measures (APMs).

Entities permitted to present additional earnings per share amounts

An entity is permitted to present EPS figures other than the basic and diluted EPS figures required to be presented under IAS 33. Such figures may be calculated based on a reported component of the statement of comprehensive income other than those required by IAS 33 (i.e. profit or loss from continuing operations attributable to the ordinary equity holders of the parent entity and profit or loss attributable to the ordinary equity holders of the parent entity). However, the denominator (i.e. the weighted average number of shares) should still be determined in accordance with the Standard.

The entity is required to indicate the basis on which the numerator(s) is (are) determined, including whether amounts per share are before tax or after tax.

In addition, if the numerator (earnings figure) used is not reported as a line item in the statement of comprehensive income, a reconciliation is required between the numerator and a line item that is reported in the statement of comprehensive income.

The requirements of IAS 33 regarding the presentation of additional EPS amounts apply equally to an entity that discloses, in addition to basic and diluted EPS, amounts per share using a reported item of profit or loss, other than one required by IAS 33.

Presentation of additional EPS measures in the statement of comprehensive income IAS 33 requires that additional measures of EPS be included in the notes to the financial statements (and that basic and diluted measures be presented with equal prominence). No reference is made to presentation on the face of the statement of comprehensive income, and it is not clear whether presentation both in the notes and on the face of the statement of comprehensive income is permitted. At least in some jurisdictions, this approach may not be seen as best practice and, in fact, it may conflict with the requirements of local regulators.

Calculation of additional per share measures IAS 33 does not specify the manner in which additional per share amounts should be determined, other than for additional amounts per share using a reported component of the statement of comprehensive income. When an entity discloses additional per share measures that relate to the period as a whole that are not based on a reported component of the statement of comprehensive income (e.g. cash flows per share), it would seem appropriate for the denominator to be calculated on the same basis as that used for earnings per share. However, when per share disclosures are provided that relate only to a component of the statement of financial position at the end of the reporting period and not to a reported component of the statement of comprehensive income (e.g. net assets per share), in order to compare like with like, it would seem appropriate for the denominator to reflect the shares in issue at the end of the financial reporting period. In either case, the basis of calculation of the numerator and the denominator should be clearly disclosed.

What should be considered when publishing a five-year track record for EPS purposes? Entities often publish a historical summary, usually covering at least five years. IAS 33 does not deal specifically with adjustments to historical summaries, but the following guidance is relevant in such situations. In order to present a fair comparison of EPS figures published in such a summary, the basic EPS figure will need to be adjusted for subsequent changes in capital, as set out below: ·        Where a capitalisation issue or share split has taken place during a financial year, all previously published EPS figures should be adjusted by the bonus factor. ·        Where a rights issue at less than full market has taken place during a financial year, all previously published EPS figures should be adjusted by the reciprocal of the bonus element inherent in the rights issue. Where there is more than one capitalisation or rights issue during the year, both of these factors will operate cumulatively. The cumulative effect of all of these events should be taken into account. The resultant figures should be described as restated EPS, and they should be set out separately from the other financial data that is not so adjusted. Where there has been a bonus or rights issue in the period covered by the summary, the ordinary dividend actually paid in those periods should be set out in the form of pence per share, and it should be similarly adjusted by the same factors used in restating EPS. This adjustment is necessary to ensure that the ordinary dividends and EPS data are comparable. The adjusted dividend per share should be described as restated. In practice, the adjusted EPS and the adjusted dividend per share are normally presented next to each other.