SIC-24
Historical
Earnings Per Share–Financial Instruments and Other Contracts that May Be Settled in Shares
Addressed how to treat contracts that may be settled in shares or cash when computing diluted EPS, establishing a rebuttable presumption of share settlement. Withdrawn in 2003.
Historical Reference
SIC-24 was withdrawn in March 2003 when the IASB issued a revised IAS 33 Earnings Per Share, which superseded SIC-24 by incorporating the share-settlement presumption directly into the diluted EPS calculation guidance.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IAS 33 Earnings Per Share 1
What SIC-24 Addressed (Historical)
What SIC-24 addressed
SIC-24 addressed how to treat contracts that may be settled in shares or cash when computing diluted earnings per share. It considered whether the assumption about share settlement should affect the calculation of the profit or loss attributable to ordinary shareholders and whether the contract should be included in diluted EPS.
2
The Conclusion It Reached (Historical)
The conclusion it reached
SIC-24 concluded that contracts that may be settled in shares or cash should be assumed to be settled in shares for the purpose of computing diluted EPS, unless there is clear evidence that a cash settlement is expected. This presumption of share settlement should be applied consistently, and the profit or loss attributable to ordinary shareholders should be adjusted for any dividends or interest relating to the assumed share settlement.
3
Where This Guidance Lives Today
Where this guidance lives today
Superseded byIAS 33 Earnings Per Share
Why withdrawnThe 2003 revision incorporated the share-settlement presumption directly into diluted EPS calculation guidance
Current statusWithdrawn
Glossary
Diluted EPS
Earnings per share calculated by assuming the conversion of dilutive potential ordinary shares, including contracts that may be settled in shares.
Share settlement
A method of settling a contract by delivering shares rather than cash, assumed for diluted EPS calculations under SIC-24's rebuttable presumption.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-2000
In January 2000 the Standing Interpretations Committee issued SIC-24 Earnings Per Share–Financial Instruments and Other Contracts that May Be Settled in Shares.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-24.
Minor consequential amendment to SIC-24
Mar-2003
In March 2003 the Board issued a revised IAS 33 Earnings Per Share which superseded SIC-24.
Superseded by revised IAS 33