IAS 33 allows companies to present an alternative measure of EPS (Earnings per Share) in addition to the standard basic and diluted EPS presented. Sometimes companies will do this if they have large or unusual items in their financial statements.
If they do present an alternative EPS measurement:
- a reconciliation must be provided between the earnings figure contained in the SOCI and the earnings figure used in the alternative EPS.
- the alternative EPS must use the same weighted average number of shares as the standard EPS calculations
- basic and diluted EPS should be presented with equal prominence, and
- the alternative figure must only be shown in the notes, not on the face of the statement of comprehensive income.