16. December 2016

ASCG submission to the IFRS IC on IAS 33

The ASCG just has sent a submission (Potential Agenda Item Request – PAIR) to the IFRS IC seeking clarification on an issue relating to IAS 33 Earnings per share.

In the submission, we describe circumstances where participating equity instruments are classified as equity under IFRS but are classified as liabilities under (national) tax rules. Under these circumstances the question arises whether, in calculating basic earnings per (ordinary) share, the profit or loss attributable to ordinary shareholders shall be adjusted for the pre-tax-amounts or after-tax-amounts of the profit or loss attributable to those participating instruments. While IAS 33.12 et seqq. addressing preference shares provides clarity on this issue, we deem IAS 33.A13 et seq. addressing those participating instruments lacking clarification on the very same issue.