IAS 33 and basic EPS question question, ordinary, understand

prav_Cfa7

I read IAS 33 about EPS but i dont understand the example and need to be helped by you.
Example 3 in IAS 33 about Bonus Issue:
Profit attributable to ordinary equity holders of the parent entity 20X0 is 180
Profit attributable to ordinary equity holders of the parent entity 20X1 is 600
Ordinary shares outstanding until 30 September 20X1 is 200
Bonus issue 1 October 20X1 two ordinary shares for each ordinary share outstanding at 30 September 20X1 is equal to 200*2 = 400
Question: Calculate basic EPS year 20X0 and 20X1
Answer in IAS 33:
Basic EPS 20X0 = 180/(200+400)
Basic EPS 20X1 = 600/(200+400)
But if i assume at 31 December 20X0 the number of ordinary outstanding share is 150. What is the basic EPS for the year 20X0?
Is basic EPS year 20X0 equal to 180/(150+400) or 180/(200+400)?
IAS 33 doesnt mention this case, so i don’t know how to understand.
Thanks for your help!

Fdez

bonus/right shares are treated as splits … means you have to apply the split from the begining of the year … assuming jan1 to dec 31 year … if split occur at dec 31, you will do 180/(150+300) …
you cant do 180/(150 +400) or 180/(200+400) bcoz none of these apply, as you have changed the number of shares outstanding how come you are calculating bonus on 200 shares outstanding …
if you have difficulty understanding this … i suggest reading the standard again.

ninja1024

The bonus is more like stock dividends, rather than stock split, but the same applies to both stock splits and stock dividends: consider the shares resulted from the split or the dividends as active at the beginning of the period (year or operating cycle, whichever is longer).
The major difference between stock splits and dividends is that a split increases the number of shares, decreases the value of each individual share, without changing the total value of equity, while a stock dividend increases the number of shares outstanding and the total value of equity, without changing the value of an individual share.

ryanlb

map1, in my experience stock dividend also decreases the value of individual shares as cash dividends and splits do, at the dividend exdate, the stocks opens at a lower rate.
Edit: and yes you are correct, bonus is like stock dividend not split, but treatment will be the same

YouCanDoIt

madanalyst you’re right, it will decrease the value of a share at exdate, but that’s a slight decrease driven by market’s reaction to the bonus being given, not like say splitting in half the value of a share (for a 2 for 1 split) when issuing splits.