Document ID: chunk:federal_register_of_legislation:F2021C00879:body:0:p31
Version: federal_register_of_legislation:F2021C00879
Segment Type: other
Provision Reference: 
Character Range: 100862–112248

share, calculated: (800 × CU5.00) + (300 × CU1.00).
    (c) Parent's ordinary shares outstanding.
    (d) Parent's proportionate interest in subsidiary's earnings attributable to ordinary shares, calculated: (800 ÷ 1,000) × (1,000 shares × CU3.66 per share).
    (e) Parent's proportionate interest in subsidiary's earnings attributable to warrants, calculated: (30 ÷ 150) × (75 incremental shares × CU3.66 per share).
    (f) Parent's proportionate interest in subsidiary's earnings attributable to convertible preference shares, calculated: (300 ÷ 400) × (400 shares from conversion × CU3.66 per share).

Example 11  Participating equity instruments and two-class ordinary shares[5]
Reference: AASB 133, paragraphs A13 and A14
Profit attributable to equity holders of the parent entity                                                                                                                                                                                                                                                                                                                                                                               CU100,000
Ordinary shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                              10,000
Non-convertible preference shares                                                                                                                                                                                                                                                                                                                                                                                                        6,000
Non-cumulative annual dividend on preference shares (before any dividend is paid on ordinary shares)                                                                                                                                                                                                                                                                                                                                     CU5.50 per share
After ordinary shares have been paid a dividend of CU2.10 per share, the preference shares participate in any additional dividends on a 20:80 ratio with ordinary shares (ie after preference and ordinary shares have been paid dividends of CU5.50 and CU2.10 per share, respectively, preference shares participate in any additional dividends at a rate of one-fourth of the amount paid to ordinary shares on a per-share basis).
Dividends on preference shares paid                                                                                                                                                                                                                                                                                                                                                                                                                                                   CU33,000          (CU5.50
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        per share)
Dividends on ordinary shares paid                                                                                                                                                                                                                                                                                                                                                                                                                                                     CU21,000          (CU2.10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        per share)
Basic earnings per share is calculated as follows:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CU                CU
Profit attributable to equity holders of the parent entity                                                                                                                                                                                                                                                                                                                                                                                                                                              100,000
Less dividends paid:
 Preference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     33,000
 Ordinary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       21,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (54,000)
Undistributed earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              46,000
Allocation of undistributed earnings:
Allocation per ordinary share = A
Allocation per preference share = B; B = 1/4 A
                                                                                                                                                                                                                                                                                                                                                                                                                                         (A × 10,000) + (1/4 × A × 6,000) = CU46,000
                                                                                                                                                                                                                                                                                                                                                                                                                                         A = CU46,000 ÷ (10,000 + 1,500)
                                                                                                                                                                                                                                                                                                                                                                                                                                         A = CU4.00
                                                                                                                                                                                                                                                                                                                                                                                                                                         B = 1/4 A
                                                                                                                                                                                                                                                                                                                                                                                                                                         B = CU1.00

Basic per share amounts:
Preference                Ordinary
shares                    shares
Distributed earnings      CU5.50       CU2.10
Undistributed earnings    CU1.00       CU4.00
Totals                    CU6.50       CU6.10

Example 12  Calculation and presentation of basic and diluted earnings per share (comprehensive example)[6]
This example illustrates the quarterly and annual calculations of basic and diluted earnings per share in the year 20X1 for Company A, which has a complex capital structure. The control number is profit or loss from continuing operations attributable to the parent entity. Other facts assumed are as follows:
Average market price of ordinary shares: The average market prices of ordinary shares for the calendar year 20X1 were as follows:

   First quarter   CU49
   Second quarter  CU60
   Third quarter   CU67
   Fourth quarter  CU67

The average market price of ordinary shares from 1 July to 1 September 20X1 was CU65.
Ordinary shares: The number of ordinary shares outstanding at the beginning of 20X1 was 5,000,000. On 1 March 20X1, 200,000 ordinary