IAS Plus: SIC 24, Earnings Per Share

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SIC 24 Earnings Per Share – Financial Instruments and Other Contracts that May Be Settled in Shares
— Superseded —

References

IAS 33, Earnings Per Share

History

Issued: November 2000
Effective date: 1 December 2000
Superseded by and incorporated into IAS 33 (Revised 2003) effective: Annual periods beginning on or after 1 January 2005.

SUMMARY OF SIC 24

SIC 24 addresses the treatment of instruments that may be settled by a reporting enterprise either by payment of financial assets or by payment in the form of a transfer of ordinary shares of the reporting enterprise to the holder. SIC 24 states that all instruments that may result in the issuance of ordinary shares of the reporting enterprise to the holder of the financial instrument, at the option of the issuer or the holder, are potential ordinary shares of that enterprise. If a potential ordinary share is dilutive, (that is, its conversion to ordinary shares would decrease net profit per share from continuing ordinary operations) its dilutive effect is included in calculating diluted earnings per share.

Click for IASC Press Release on SIC 24 (PDF 33k)

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