Page 125 - F2 Integrated Workbook STUDENT 2019

Earnings per share

WAV calculation with a rights issue

Actual number of n/12 Bonus Total
shares in issue Fraction

number of shares months before BF X
before rights issue share issue/12

number of shares months after share X
after rights issue issue/12

––––––––––––––––
WAV

––––––––––––––––

Just like a bonus issue, the impact of the rights issue on the
comparative EPS calculation must be considered.

Adjusted comparative EPS = Last years’ EPS × inverse
of the bonus fraction

117