EPS: Rights issues, Options and Warrants | IAS 33 Earnings per Share

Definitions of Rights issues, Options and Warrants

A rights issue is where a company offers existing shareholders a chance to buy new shares in the company at below market rates at a future date.

They’re usually offered to shareholders in proportion to their existing shareholdings.

Options and warrants are similar in the sense that people, often employees can get the opportunity to buy shares at below their market rate.

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Bonus Issues and Earnings per Share under IAS 33

A bonus issue of shares (also known as a scrip issue or a capitalisation issue) is an issue of new shares to existing shareholders, in proportion to their existing shareholding, for no cost or consideration. The company receives absolutely no money for it, they’re given away free of charge. Why does a company issue bonus …

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What are ‘Earnings’ for EPS in IAS 33?

Earnings For the purpose of calculating basic earnings per share under IAS 33, earnings is the net profit after deducting: Tax Non-Controlling Interest (Minority Interest) Non-controlling interest So earnings is the net profit after tax minus any minority interest. So how do we adjust the minority interest out of the EPS calculations? Simply take the …

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