Book Value Per Share, Basic Earnings Per
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Book Value per Share, Basic Earnings per Share and Diluted Earnings per Share 17 September 2016
Book value per share Definition and formula Accounting procedures Preference as to assets Preference as to dividends
UNOR - College of Business and Accountancy
1
17 September 2016 Slide 2
Definition and importance •
The amount that would be paid on each share assuming the entity is liquidated and the amount available to the shareholders is exactly the amount reported in the shareholders’ equity (Valix et al., 2015).
•
Measure used by owners of shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.
•
Should the company decide to dissolve, the book value per common indicates the peso value remaining for common shareholders after all assets are liquidated, all debtors are paid and preferred shareholders’ rights are considered.
•
Calculated using historical costs.
UNOR - College of Business and Accountancy
17 September 2016 Slide 3
Definition - preference shares •
Liquidation value - normally received upon liquidation; may be more than the par value
•
Preference shareholders may be: 1. Preferred as to assets
2. Preferred as to dividends • Noncumulative preference share entitled to current year dividends only • Cumulative preference share - all dividends in arrears • Nonparticipating preference share – dividends equal to the fixed rate • Participating preference share - entitled 17 September to dividends aside from the fixed rate (fully,2016 UNOR - College of Business and Accountancy
Slide 4
Formula •One class of share capital:
UNOR - College of Business and Accountancy
17 September 2016 Slide 5
Illustration No. 1 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Share capital, P100 par, 50,000 shares
P5,000,000
Share premium
1,000,000
Retained earnings
2,000,000
Revaluation surplus
1,500,000
Total shareholders’ equity
UNOR - College of Business and Accountancy
P9,500,000
17 September 2016 Slide 6
Illustration No. 1
(Cont’d)
•
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17 September 2016 Slide 7
Formula
(Cont’d.)
•Two classes of share capital
UNOR - College of Business and Accountancy
17 September 2016 Slide 8
Accounting procedures 1. The amount equal to the par value is allocated to the preference share and ordinary share. 2. Any balance of the shareholders’ equity in excess of the par or stated value is then apportioned taking into account the liquidation value and dividend rights of the preference shareholders. For book value purposes, the following are assumed to be available for dividends: a. Retained earnings (R/E) b. Share premium (SP) c. Revaluation surplus 3. Treasury share are treated as retired [gain (SP), loss (SP, R/E)] UNOR - College of Business and Accountancy
17 September 2016 Slide 9
Accounting procedures (Cont’d) SPECIAL NOTES ON PREFERENCE SHARE AS TO DIVIDENDS 1. ‘No specific designation - assume noncumulative, nonparticipating 2. Dividends in arrears - include current dividends, must be specifically disclosed 3. Two classes of preference shares with different rates both participating - lower rate will be the basis for allocation of ordinary shares If one preference share is participating, rate of the participating preference share will be used as basis UNOR - College of Business and Accountancy
17 September 2016 Slide 10
Preference as to assets The preference shareholders are entitled to payments not only for liquidation value but also for dividends in arrears.
UNOR - College of Business and Accountancy
17 September 2016 Slide 11
Preference as to dividends If dividends are declared, the preference shareholders have the right to receive dividends first before the ordinary shareholders are paid dividends
UNOR - College of Business and Accountancy
17 September 2016 Slide 12
Illustration 2 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par, 25,000 shares
P2,500,00 0
Ordinary share capital, P100 par, 50,000 shares
5,000,000
Share premium Retained earnings
600,000 3,000,000
Total shareholders’ equity
P11,100, 000 Dividends have been paid on the preference share up to
December 31, 2013. UNOR - College of Business and Accountancy
17 September 2016 Slide 13
Illustration 2
(Cont’d)
CASE 1 - PREFERENCE SHARE IS NONCUMULATIVE AND NONPARTICIPATING Excess Preferenc over par e Balances
P3,600,00 0
P2,500,00 0
Preference dividend
(300,000)
300,000
Balance to common
3,300,000
Total shareholders’ equity Divided by shares outstanding UNOR - College of Business and Accountancy Book value per share
Ordinary 5,000,000
3,300,000
2,800,000
8,300,000
25,000
50,000
P112
17 September 2016 P166 Slide 14
Illustration 2
(Cont’d)
CASE 2 - PREFERENCE SHARE IS CUMULATIVE AND NONPARTICIPATING Excess Preferenc over par e Balances
P3,600,00 0
P2,500,00 0
Preference dividend
(600,000)
600,000
Balance to common
3,000,000
Total shareholders’ equity Divided by shares outstanding UNOR - College of Business and Accountancy Book value per share
Ordinary 5,000,000
3,000,000
3,100,000
8,000,000
25,000
50,000
P124
17 September 2016 P160 Slide 15
Illustration 2
(Cont’d)
CASE 3 - PREFERENCE SHARE IS CUMULATIVE AND PARTICIPATING Excess Preferenc over par
e
Ordinary
Balances
P3,600,00 0
P2,500,00 0
5,000,000
Preference dividend
(600,000)
600,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Preference (1/3 x 2,400,000) Ordinary (2/3 x 2,400,000) Total shareholders’ equity
UNOR - College of Business and Accountancy
600,000
800,000 1,600,00 3,900,000 17 September 7,200,000 2016 Slide 16
Illustration 2
(Cont’d)
CASE 4 - PREFERENCE SHARE IS CUMULATIVE AND PARTICIPATING UP TO 16% Excess over par
Preferenc e
Ordinary
P3,600,000
P2,500,000
5,000,000
Preference dividend
(600,000)
600,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Balances
Preference (4% x 2,500,000)
600,000
100,000
Ordinary (balance to common) Total shareholders’ equity Divided by shares outstanding
UNOR - College of Business and Accountancy
2,300,00 3,200,000
7,900,000
25,00017 September 50,000 2016 Slide 17
Illustration 2
(Cont’d)
CASE 5 - PREFERENCE SHARE IS CUMULATIVE, NONPARTICIPATING AND WITH LIQUIDATION VALUE Excess Prefere Ordinar OF P106 PER SHARE over par
nce
y
Balances
P3,600,0 00
P2,500,0 00
5,000,00 0
Liquidation premium (25,000sh x P6)
(150,000 )
150,000
Preference dividends
(600,000 )
600,000
Balance to common
2,850,00 0
Total shareholders’ equity UNOR Divided - College by of shares Business and outstanding Accountancy
2,850,00 0 3,250,00 0
7,850,00 0
17 September 2016 25,000 50,000 Slide 18
Exercise 1 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par
P1,000,00 0
Ordinary share capital, P100 par
4,000,000
Share premium
2,000,000
Retained earnings
1,000,000
Total shareholders’ equity
P8,000,0 00
Dividends have been paid on the preference share up to December 31, 2013. UNOR - College of Business and Accountancy
17 September 2016 Slide 19
Exercise 1
(Cont’d)
REQUIRED: Compute the book value per ordinary share and per preference share under each of the following conditions with respect to preference share: 1. Cumulative and fully participating 2. Cumulative and fully participating after ordinary share receives 15% 3. Cumulative and participating up to 16% 4. Cumulative and nonparticipating 5. Noncumulative and nonparticipating.
UNOR - College of Business and Accountancy
17 September 2016 Slide 20
Illustration 3 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par, 25,000 shares cumulative
P2,500,00 0
Ordinary share capital, P100 par, 50,000 shares
5,000,000
Deficit
(900,000)
Total shareholders’ equity
P6,600,0 00
No dividends have been paid on preference share since 2012. UNOR - College of Business and Accountancy
17 September 2016 Slide 21
Illustration 3
(Cont’d)
CASE 1 – PREFERENCE SHARE HAS PREFERENCE AS TO ASSETS (DIVIDENDS IN ARREARS ARE FULLY Excess Prefere Ordinar PAYABLE) over par
nce
y
(P900,00 )
P2,500,0 00
P5,000,0 00
Preference dividend
(1,200,00 0)
1,200,00 0
Balance to common
(2,100,00 0)
Balances
Total shareholders’ equity Divided by shares outstanding Book value per share UNOR - College of Business and Accountancy
(2,100,00 0) 3,700,00 0
2,900,00 0
25,000
50,000
P148 P58 17 September 2016 Slide 22
Illustration 3
(Cont’d)
CASE 2 – PREFERENCE SHARE HAS PREFERENCE AS TO DIVIDENDS Excess Prefere Ordinar over par
nce
y
(P900,00 )
P2,500,0 00
P5,000,0 00
Preference - 1/3
300,000
(300,000 )
Ordinary - 2/3
600,000
Balances Share in deficit:
Total Divide by shares outstanding UNOR Book - College value of Business per andshare Accountancy
(600,000 ) 2,200,00 0
4,400,00 0
25,000
50,000
17 September 2016 88 88 Slide 23
Illustration 4 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% cumulative, participating, P100 par, 50,000 shares authorized, 25,000 shares issued, of which 5,000 shares are in treasury Treasury preference shares, at cost Subscribed preference share capital, 10,000 shares Subscription receivables - preference Ordinary share capital, P50 par, 200,000 shares authorized, 90,000 shares issued, of which 10,000 shares are in treasury Treasury ordinary shares, at cost Subscribed ordinary share capital, 20,000 shares Subscription receivables - ordinary
UNOR - College of Business and Accountancy
P2,500,000 400,000 1,000,000 300,000
4,500,000 550,000 1,000,000 200,000 17 September 2016 Slide 24
Illustration 4 Share premium
(Cont’d) P1,250,000
Retained earnings unappropriated
1,000,000
Retained earnings appropriated
2,500,000
Last dividend payments
UNOR - College of Business and Accountancy
December 31, 2010
17 September 2016 Slide 25
Illustration 4
(Cont’d)
Computation of share capital outstanding: PREFERENCE Amount
Shares
ORDINARY Amount
Shares
Issued
P2,500,0 00
25,000
P4,500,0 00
90,000
Subscribed
1,000,00 0
10,000
1,000,00 0
20,000
Total
3,500,00 0 500,000
Less: treasury at par Outstanding
P3,000,0 00
UNOR - College of Business and Accountancy
35,000
5,500,00 0
110,000
5,000
500,000
10,000
30,000 P5,000,0 00
100,000
17 September 2016 Slide 26
Illustration 4
(Cont’d)
Adjustment to retire ordinary treasury shares and preference treasury shares. Preference share capital (5,000sh x 100)
500,000
Treasury preference shares
400,000
Share premium
100,000
Ordinary share capital (10,000sh x 50) Share premium Treasury ordinary shares
UNOR - College of Business and Accountancy
500,000 50,000 550,000
17 September 2016 Slide 27
Illustration 4
(Cont’d)
Excess over par
Preference
Ordinary
Balances
P4,800,000
P3,000,000
5,000,000
Preference dividend
(1,800,000)
1,800,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Preference (3/8 x 2,400,000)
600,000
900,000
Ordinary (5/8 x 2,400,000) Total shareholders’ equity Divided by shares outstanding
1,500,00 5,700,000
7,100,000
30,000
100,000
Annualvalue dividend preference (12% x P3,000,000 x 5) P128 P1,800,000 Book perfor share P71 Ordinary dividend (P5,000,000 x 12%) UNOR - College of Business and Accountancy
600,000
17 September 2016 Slide 28
Illustration 5 An entity showed the following shareholders’ equity on December 31, 2015:
Preference share capital, P100 par, 50,000 shares
P5,000,00 0
Ordinary share capital, P50 par, 150,000 shares
7,500,000
The preference dividend rate is 12% and the preference share is Retained earnings 4,000,000 cumulative and fully participating. Dividends on the preference share are in arrears for 2014 and 2015. On December 31, 2015, the board of directors of the entity would like to pay the ordinary shareholders a dividend of P10 per share. UNOR - College of Business and Accountancy
17 September 2016 Slide 29
Illustration 5
(Cont’d)
Question: To attain the dividend objective of the entity, how much maximum dividend would be declared on the preference and ordinary shares?
UNOR - College of Business and Accountancy
17 September 2016 Slide 30
Illustration 5
(Cont’d)
Ordinary dividend for 2015 (150,000 shares x P10) % of ordinary dividend (1,500,000 ÷ 7,500,000)
P1,500,00 0 20%
Computation of maximum dividends Ordinary dividend
P1,500,00 0
Preference dividend: 2014 (12% x P5,000,000)
600,000
2015 (20% x P5,000,000)
1,000,000
Maximum dividend UNOR - College of Business and Accountancy
P3,100,0 00 17 September 2016 Slide 31
Illustration 5
(Cont’d)
Proof: Dividend Maximum dividend
Preferenc e
Ordinary
P3,100,000
Preference dividends: 2014
(600,000)
P600,000
2015
(600,000)
600,000
Ordinary dividend for 2015 using the preference rate (12% x 7,500,000)
(900,000)
Balance for participation
1,000,000
Preference (50/125 x P1,000,000)
UNOR - College of Business and Accountancy
Ordinary (75/125 x
P900,000 400,000 17 September 2016 Slide 32
600,000
Basic earnings per share Definition and formula Uses of earnings per share Determination of weighted average Bonus issue and rights issue Presentation
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2
17 September 2016 Slide 33
Definition
The amount attributable to every ordinary share outstanding during the period
Pertains to ordinary shares
Not necessary for preference; definite rate of return
Two presentation under PAS 33: 1. Basic earnings per share 2. Diluted earnings per share Required for publicly-traded entities or in the process of issuing ordinary shares or potential ordinary shares in the public securities market; not required for nonpublic entities but encouraged
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17 September 2016 Slide 34
Definition
(Cont’d)
Equity instrument - residual interests in the assets after deducting liabilities
Potential ordinary share - financial instrument or other contract that may entitle its holder to ordinary share
Financial instrument - any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity
Warrants or options - financial instruments that give the holder the right to purchase ordinary shares
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17 September 2016 Slide 35
Formula •
•
Net income - after deducting dividends on preference shares
•
Preference share is cumulative - current year only is deducted, whether dividends are declared or not
•
Preference share is noncumulative - current year only is deducted if there is only dividend declaration
•
If there is significant change during the year weighted average number of ordinary share capital 17 September 2016 UNOR - College of Business and Accountancy Slide 36 is the denominator
Illustration 6 An entity provided the following information for the current year: Preference share capital, P100 par, 10% P1,000,00 cumulative Ordinary share capital, P100 par, 50,000 shares Income from continuing operations Income form discontinued operations Net income
0 5,000,000 P1,500,00 0 500,000 P2,000,0 0
Required: Compute for the earnings per share.
UNOR - College of Business and Accountancy
17 September 2016 Slide 37
Illustration 6
(Cont’d)
Computation: Income from continuing operations Preference dividend for current year (10% x P1,000,000) Net income
P1,500,000 (100,000) P1,400,00
Basic earnings per share Income from continuing operations (P1.4mil. ÷ 50,000sh) Income from discontinued operation (P0.5mil. ÷ 50,000sh) Net income UNOR - College of Business and Accountancy
P28 10 P38 17 September 2016 Slide 38
Uses of earnings per share •
Determinant of market price of ordinary shares (attractiveness of the ordinary share as an investment)
•
Measure of performance
•
Basis of dividend policy
UNOR - College of Business and Accountancy
17 September 2016 Slide 39
Illustration 7 An entity had the following capital structure at the end of the current year: Preference share capital, P100 par, 40,000 P2,000,00 shares issued and outstanding 0 Ordinary share capital, P50 par, 80,000 shares issued and outstanding
8,000,000
Net income for the year
3,000,000
The preference dividend rate is 10% and the preference share is nonconvertible but cumulative and fully participating. Dividends paid to ordinary shareholders is P20 per share. UNOR - College of Business and Accountancy
17 September 2016 Slide 40
Illustration 7
(Cont’d) Preference
Ordinary
Basic dividend: Preference (10% x P2,000,000)
P200,000
Ordinary (80,000 x P20) Balance for participation Total dividends Net income
P1,600,000 240,000
960,000
P440,000
P2,560,000 P3,000,000
Basic dividend (P200,000 + P1,600,000) Balance for participation
(1,800,000) P1,200,000
Basic earnings per share Preference share (P440,000 ÷ 40,000 shares)
P11
Ordinary share (P2,560,000 ÷ 80,000 shares)
32
UNOR - College of Business and Accountancy
17 September 2016 Slide 41
Determination of weighted average •
Ordinary shares in exchange for cash are included when cash is receivables.
•
Ordinary shares issued as a result of the conversion of a debt instrument to ordinary shares are included from the date that interest ceases to accrue.
•
Ordinary shares issued in place of interest or principal on other financial instruments are included form the date that interest ceases to accrue.
•
Ordinary shares issued in exchange for the settlement of a liability of the entity are included from the settlement date.
•
Ordinary shares issued as a consideration for the acquisition of an asset other than cash are included as of the date on which the acquisition is recognized.
UNOR - College of Business and Accountancy
17 September 2016 Slide 42
Determination of weighted average
(Cont’d)
•
Ordinary shares issued for the rendering of services to the entity are included as the services are rendered.
•
Ordinary shares issued as part of the purchase consideration of a business combination that is an acquisition are included in the weighted average number of shares from the date of acquisition.
•
Ordinary shares that will be issued upon the conversion of a mandatory convertible instrument are included in the calculation of basic earnings per share from the date the contract entered into.
•
In the case of a stock dividend or a share split, ordinary shares are issued to existing shareholders for no additional consideration.
UNOR - College of Business and Accountancy
17 September 2016 Slide 43
Determination of weighted average
(Cont’d)
The number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period reported. •
Subscribed ordinary shares or partly paid shares are included in EPS to the extent that they are entitled to participate in dividends. (Corporation Code of the Philippines - entitled to participate fully in dividends; the law prevails)
UNOR - College of Business and Accountancy
17 September 2016 Slide 44
Illustration 8
January 1
Beginning balance
100,000 shares
May 1
Additional issuance
150,000 shares
September 1
Additional issuance
150,000 shares
Total shares outstanding
UNOR - College of Business and Accountancy
400,000 shares
17 September 2016 Slide 45
Illustration 8
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Months outstanding
Peso month
Jan. 1
100,000
12
May 1
150,000
8
1,200,000
Sep. 1
150,000
4
600,000
P1,200,000
3,000,000 Average share (P3,000,000 ÷ 12)
UNOR - College of Business and Accountancy
250,000 shares
17 September 2016 Slide 46
Illustration 8
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
100,000
12/12
100,000
May 1
150,000
8/12
100,000
Sep. 1
150,000
4/12
50,000 250,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 47
Illustration 9
January 1
Beginning balance
March 1
Issued for cash
50,000 shares
July 1
20% stock dividend
30,000 shares
November 1
Treasury shares Total shares outstanding
UNOR - College of Business and Accountancy
100,000 shares
(15,000 shares) 165,000 shares
17 September 2016 Slide 48
Illustration 9
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Mos. outstading
Peso month
Jan. 1
120,000
12
P1,440,000
Mar. 1
60,000
10
600,000
Nov. 1
(15,000)
2
(30,000)
Average share (P2,010,000 ÷ 12)
UNOR - College of Business and Accountancy
2,010,000 167,500 shares
17 September 2016 Slide 49
Illustration 9
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
120,000
12/12
120,000
Mar. 1
60,000
10/12
50,000
Nov. 1
(15,000)
2/12
(2,500) 167,500
UNOR - College of Business and Accountancy
17 September 2016 Slide 50
Illustration 10
January 1
100,000 shares issued and outstanding
April 1
Issued 50,000 new shares
June 1
Share split 2 for 1
July 1
Purchased 20,000 treasury shares
October 1
20% stock dividends
December 31
Share split 5 for 1
UNOR - College of Business and Accountancy
17 September 2016 Slide 51
Illustration 10
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Mos. outstading
Peso month
Jan. 1
1,200,000
12
Mar. 1
600,000
9
5,400,000
Nov. 1
(120,000)
6
(720,000)
Average share (P19,080,000 ÷ 12)
UNOR - College of Business and Accountancy
P14,400,000
19,080,000 1,590,000 shares
17 September 2016 Slide 52
Illustration 10
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
1,200,000
12/12
Apr. 1
600,000
9/12
450,000
Jul. 1
(120,000)
6/12
(60,000)
1,200,000
1,590,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 53
Bonus issue •
Ordinary shares are issued to existing shareholders for no consideration.
•
Stock dividend
•
Adjusted proportionate for the proportionate change in the number of ordinary shares outstanding as if occurred at the beginning of the year
UNOR - College of Business and Accountancy
17 September 2016 Slide 54
Illustration 11 Net income - 2015
7,200,000
Net income – 2016
6,000,000
Ordinary share outstanding on January 1, 2015
200,000
On October 1, 2016, the entity implemented a bonus issue of ordinary shares in the ratio of two ordinary shares for each ordinary share.
UNOR - College of Business and Accountancy
17 September 2016 Slide 55
Rights issue •
Exercise price is less than the fair value of the shares
•
Include a bonus element - no consideration
•
Stock right or right of preemption
•
Adjustment factor is the ratio of the market value of the right-on to the theoretical market value of the share ex-right
•
Market value of the share right-on - market value of the share immediately prior to the exercise of rights.
•
Problem - if ex-right
•
Market value of the share ex-right – total market value of the shares outstanding plus the proceed 17 September 2016 UNOR from - College the of Business and Accountancy exercise of rights divided by the numberSlide of 56
Diluted earnings per share Concept of dilution Potential ordinary shares Procedures for treasury share method Multiple potential ordinary share
UNOR - College of Business and Accountancy
3
17 September 2016 Slide 57
Illustration 14 An entity had the following securities outstanding at the beginning of the current year: 10% convertible bonds payable, each P1,000 bond convertible into 10 ordinary P4,000,00 shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 5,000,000 Income tax rate 30% Assume that the convertible bond payable is issued on April 1 of the current year. In this case, all conversion computations will be made for nine months only, from April 1 to December 31 of the current year. 17 September 2016
UNOR - College of Business and Accountancy
Slide 58
Illustration 15 An entity had the following securities outstanding at the beginning of the current year: 10% convertible bonds payable, each P1,000 bond convertible into 10 ordinary P4,000,00 shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 5,000,000 Income tax rate 30% All of the bonds were converted into ordinary shares on October 1 of the current year. UNOR - College of Business and Accountancy
17 September 2016 Slide 59
Illustration 16 An entity had the following securities outstanding at the beginning of the current year: 10% convertible cumulative preference share capital , P100 par, 30,000 shares one preference share is convertible into P3,000,00 two ordinary shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 6,000,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 60
Illustration 17 An entity had the following securities outstanding at the beginning of the current year: Preference share capital – 10%, 50,000 shares, P100 par, cumulative and P5,000,00 convertible into 100,000 ordinary shares 0 Ordinary share capital, P50 par, 500,000 shares authorized, 200,000 shares issued
10,000,00 0
Net income
4,000,000
The preference shares were all converted into ordinary shares on October 1 of the current year. The preference dividends for the entire year were paid in 17 September 2016 full before the conversion. UNOR - College of Business and Accountancy
Slide 61
Book value per share Definition and formula Accounting procedures Preference as to assets Preference as to dividends
UNOR - College of Business and Accountancy
1
17 September 2016 Slide 2
Definition and importance •
The amount that would be paid on each share assuming the entity is liquidated and the amount available to the shareholders is exactly the amount reported in the shareholders’ equity (Valix et al., 2015).
•
Measure used by owners of shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.
•
Should the company decide to dissolve, the book value per common indicates the peso value remaining for common shareholders after all assets are liquidated, all debtors are paid and preferred shareholders’ rights are considered.
•
Calculated using historical costs.
UNOR - College of Business and Accountancy
17 September 2016 Slide 3
Definition - preference shares •
Liquidation value - normally received upon liquidation; may be more than the par value
•
Preference shareholders may be: 1. Preferred as to assets
2. Preferred as to dividends • Noncumulative preference share entitled to current year dividends only • Cumulative preference share - all dividends in arrears • Nonparticipating preference share – dividends equal to the fixed rate • Participating preference share - entitled 17 September to dividends aside from the fixed rate (fully,2016 UNOR - College of Business and Accountancy
Slide 4
Formula •One class of share capital:
UNOR - College of Business and Accountancy
17 September 2016 Slide 5
Illustration No. 1 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Share capital, P100 par, 50,000 shares
P5,000,000
Share premium
1,000,000
Retained earnings
2,000,000
Revaluation surplus
1,500,000
Total shareholders’ equity
UNOR - College of Business and Accountancy
P9,500,000
17 September 2016 Slide 6
Illustration No. 1
(Cont’d)
•
UNOR - College of Business and Accountancy
17 September 2016 Slide 7
Formula
(Cont’d.)
•Two classes of share capital
UNOR - College of Business and Accountancy
17 September 2016 Slide 8
Accounting procedures 1. The amount equal to the par value is allocated to the preference share and ordinary share. 2. Any balance of the shareholders’ equity in excess of the par or stated value is then apportioned taking into account the liquidation value and dividend rights of the preference shareholders. For book value purposes, the following are assumed to be available for dividends: a. Retained earnings (R/E) b. Share premium (SP) c. Revaluation surplus 3. Treasury share are treated as retired [gain (SP), loss (SP, R/E)] UNOR - College of Business and Accountancy
17 September 2016 Slide 9
Accounting procedures (Cont’d) SPECIAL NOTES ON PREFERENCE SHARE AS TO DIVIDENDS 1. ‘No specific designation - assume noncumulative, nonparticipating 2. Dividends in arrears - include current dividends, must be specifically disclosed 3. Two classes of preference shares with different rates both participating - lower rate will be the basis for allocation of ordinary shares If one preference share is participating, rate of the participating preference share will be used as basis UNOR - College of Business and Accountancy
17 September 2016 Slide 10
Preference as to assets The preference shareholders are entitled to payments not only for liquidation value but also for dividends in arrears.
UNOR - College of Business and Accountancy
17 September 2016 Slide 11
Preference as to dividends If dividends are declared, the preference shareholders have the right to receive dividends first before the ordinary shareholders are paid dividends
UNOR - College of Business and Accountancy
17 September 2016 Slide 12
Illustration 2 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par, 25,000 shares
P2,500,00 0
Ordinary share capital, P100 par, 50,000 shares
5,000,000
Share premium Retained earnings
600,000 3,000,000
Total shareholders’ equity
P11,100, 000 Dividends have been paid on the preference share up to
December 31, 2013. UNOR - College of Business and Accountancy
17 September 2016 Slide 13
Illustration 2
(Cont’d)
CASE 1 - PREFERENCE SHARE IS NONCUMULATIVE AND NONPARTICIPATING Excess Preferenc over par e Balances
P3,600,00 0
P2,500,00 0
Preference dividend
(300,000)
300,000
Balance to common
3,300,000
Total shareholders’ equity Divided by shares outstanding UNOR - College of Business and Accountancy Book value per share
Ordinary 5,000,000
3,300,000
2,800,000
8,300,000
25,000
50,000
P112
17 September 2016 P166 Slide 14
Illustration 2
(Cont’d)
CASE 2 - PREFERENCE SHARE IS CUMULATIVE AND NONPARTICIPATING Excess Preferenc over par e Balances
P3,600,00 0
P2,500,00 0
Preference dividend
(600,000)
600,000
Balance to common
3,000,000
Total shareholders’ equity Divided by shares outstanding UNOR - College of Business and Accountancy Book value per share
Ordinary 5,000,000
3,000,000
3,100,000
8,000,000
25,000
50,000
P124
17 September 2016 P160 Slide 15
Illustration 2
(Cont’d)
CASE 3 - PREFERENCE SHARE IS CUMULATIVE AND PARTICIPATING Excess Preferenc over par
e
Ordinary
Balances
P3,600,00 0
P2,500,00 0
5,000,000
Preference dividend
(600,000)
600,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Preference (1/3 x 2,400,000) Ordinary (2/3 x 2,400,000) Total shareholders’ equity
UNOR - College of Business and Accountancy
600,000
800,000 1,600,00 3,900,000 17 September 7,200,000 2016 Slide 16
Illustration 2
(Cont’d)
CASE 4 - PREFERENCE SHARE IS CUMULATIVE AND PARTICIPATING UP TO 16% Excess over par
Preferenc e
Ordinary
P3,600,000
P2,500,000
5,000,000
Preference dividend
(600,000)
600,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Balances
Preference (4% x 2,500,000)
600,000
100,000
Ordinary (balance to common) Total shareholders’ equity Divided by shares outstanding
UNOR - College of Business and Accountancy
2,300,00 3,200,000
7,900,000
25,00017 September 50,000 2016 Slide 17
Illustration 2
(Cont’d)
CASE 5 - PREFERENCE SHARE IS CUMULATIVE, NONPARTICIPATING AND WITH LIQUIDATION VALUE Excess Prefere Ordinar OF P106 PER SHARE over par
nce
y
Balances
P3,600,0 00
P2,500,0 00
5,000,00 0
Liquidation premium (25,000sh x P6)
(150,000 )
150,000
Preference dividends
(600,000 )
600,000
Balance to common
2,850,00 0
Total shareholders’ equity UNOR Divided - College by of shares Business and outstanding Accountancy
2,850,00 0 3,250,00 0
7,850,00 0
17 September 2016 25,000 50,000 Slide 18
Exercise 1 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par
P1,000,00 0
Ordinary share capital, P100 par
4,000,000
Share premium
2,000,000
Retained earnings
1,000,000
Total shareholders’ equity
P8,000,0 00
Dividends have been paid on the preference share up to December 31, 2013. UNOR - College of Business and Accountancy
17 September 2016 Slide 19
Exercise 1
(Cont’d)
REQUIRED: Compute the book value per ordinary share and per preference share under each of the following conditions with respect to preference share: 1. Cumulative and fully participating 2. Cumulative and fully participating after ordinary share receives 15% 3. Cumulative and participating up to 16% 4. Cumulative and nonparticipating 5. Noncumulative and nonparticipating.
UNOR - College of Business and Accountancy
17 September 2016 Slide 20
Illustration 3 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% P100 par, 25,000 shares cumulative
P2,500,00 0
Ordinary share capital, P100 par, 50,000 shares
5,000,000
Deficit
(900,000)
Total shareholders’ equity
P6,600,0 00
No dividends have been paid on preference share since 2012. UNOR - College of Business and Accountancy
17 September 2016 Slide 21
Illustration 3
(Cont’d)
CASE 1 – PREFERENCE SHARE HAS PREFERENCE AS TO ASSETS (DIVIDENDS IN ARREARS ARE FULLY Excess Prefere Ordinar PAYABLE) over par
nce
y
(P900,00 )
P2,500,0 00
P5,000,0 00
Preference dividend
(1,200,00 0)
1,200,00 0
Balance to common
(2,100,00 0)
Balances
Total shareholders’ equity Divided by shares outstanding Book value per share UNOR - College of Business and Accountancy
(2,100,00 0) 3,700,00 0
2,900,00 0
25,000
50,000
P148 P58 17 September 2016 Slide 22
Illustration 3
(Cont’d)
CASE 2 – PREFERENCE SHARE HAS PREFERENCE AS TO DIVIDENDS Excess Prefere Ordinar over par
nce
y
(P900,00 )
P2,500,0 00
P5,000,0 00
Preference - 1/3
300,000
(300,000 )
Ordinary - 2/3
600,000
Balances Share in deficit:
Total Divide by shares outstanding UNOR Book - College value of Business per andshare Accountancy
(600,000 ) 2,200,00 0
4,400,00 0
25,000
50,000
17 September 2016 88 88 Slide 23
Illustration 4 The shareholders’ equity in the statement of financial position on December 31, 2015 showed the following: Preference share capital, 12% cumulative, participating, P100 par, 50,000 shares authorized, 25,000 shares issued, of which 5,000 shares are in treasury Treasury preference shares, at cost Subscribed preference share capital, 10,000 shares Subscription receivables - preference Ordinary share capital, P50 par, 200,000 shares authorized, 90,000 shares issued, of which 10,000 shares are in treasury Treasury ordinary shares, at cost Subscribed ordinary share capital, 20,000 shares Subscription receivables - ordinary
UNOR - College of Business and Accountancy
P2,500,000 400,000 1,000,000 300,000
4,500,000 550,000 1,000,000 200,000 17 September 2016 Slide 24
Illustration 4 Share premium
(Cont’d) P1,250,000
Retained earnings unappropriated
1,000,000
Retained earnings appropriated
2,500,000
Last dividend payments
UNOR - College of Business and Accountancy
December 31, 2010
17 September 2016 Slide 25
Illustration 4
(Cont’d)
Computation of share capital outstanding: PREFERENCE Amount
Shares
ORDINARY Amount
Shares
Issued
P2,500,0 00
25,000
P4,500,0 00
90,000
Subscribed
1,000,00 0
10,000
1,000,00 0
20,000
Total
3,500,00 0 500,000
Less: treasury at par Outstanding
P3,000,0 00
UNOR - College of Business and Accountancy
35,000
5,500,00 0
110,000
5,000
500,000
10,000
30,000 P5,000,0 00
100,000
17 September 2016 Slide 26
Illustration 4
(Cont’d)
Adjustment to retire ordinary treasury shares and preference treasury shares. Preference share capital (5,000sh x 100)
500,000
Treasury preference shares
400,000
Share premium
100,000
Ordinary share capital (10,000sh x 50) Share premium Treasury ordinary shares
UNOR - College of Business and Accountancy
500,000 50,000 550,000
17 September 2016 Slide 27
Illustration 4
(Cont’d)
Excess over par
Preference
Ordinary
Balances
P4,800,000
P3,000,000
5,000,000
Preference dividend
(1,800,000)
1,800,000
Ordinary dividends
(600,000)
Balance to common
2,400,000
Preference (3/8 x 2,400,000)
600,000
900,000
Ordinary (5/8 x 2,400,000) Total shareholders’ equity Divided by shares outstanding
1,500,00 5,700,000
7,100,000
30,000
100,000
Annualvalue dividend preference (12% x P3,000,000 x 5) P128 P1,800,000 Book perfor share P71 Ordinary dividend (P5,000,000 x 12%) UNOR - College of Business and Accountancy
600,000
17 September 2016 Slide 28
Illustration 5 An entity showed the following shareholders’ equity on December 31, 2015:
Preference share capital, P100 par, 50,000 shares
P5,000,00 0
Ordinary share capital, P50 par, 150,000 shares
7,500,000
The preference dividend rate is 12% and the preference share is Retained earnings 4,000,000 cumulative and fully participating. Dividends on the preference share are in arrears for 2014 and 2015. On December 31, 2015, the board of directors of the entity would like to pay the ordinary shareholders a dividend of P10 per share. UNOR - College of Business and Accountancy
17 September 2016 Slide 29
Illustration 5
(Cont’d)
Question: To attain the dividend objective of the entity, how much maximum dividend would be declared on the preference and ordinary shares?
UNOR - College of Business and Accountancy
17 September 2016 Slide 30
Illustration 5
(Cont’d)
Ordinary dividend for 2015 (150,000 shares x P10) % of ordinary dividend (1,500,000 ÷ 7,500,000)
P1,500,00 0 20%
Computation of maximum dividends Ordinary dividend
P1,500,00 0
Preference dividend: 2014 (12% x P5,000,000)
600,000
2015 (20% x P5,000,000)
1,000,000
Maximum dividend UNOR - College of Business and Accountancy
P3,100,0 00 17 September 2016 Slide 31
Illustration 5
(Cont’d)
Proof: Dividend Maximum dividend
Preferenc e
Ordinary
P3,100,000
Preference dividends: 2014
(600,000)
P600,000
2015
(600,000)
600,000
Ordinary dividend for 2015 using the preference rate (12% x 7,500,000)
(900,000)
Balance for participation
1,000,000
Preference (50/125 x P1,000,000)
UNOR - College of Business and Accountancy
Ordinary (75/125 x
P900,000 400,000 17 September 2016 Slide 32
600,000
Basic earnings per share Definition and formula Uses of earnings per share Determination of weighted average Bonus issue and rights issue Presentation
UNOR - College of Business and Accountancy
2
17 September 2016 Slide 33
Definition
The amount attributable to every ordinary share outstanding during the period
Pertains to ordinary shares
Not necessary for preference; definite rate of return
Two presentation under PAS 33: 1. Basic earnings per share 2. Diluted earnings per share Required for publicly-traded entities or in the process of issuing ordinary shares or potential ordinary shares in the public securities market; not required for nonpublic entities but encouraged
UNOR - College of Business and Accountancy
17 September 2016 Slide 34
Definition
(Cont’d)
Equity instrument - residual interests in the assets after deducting liabilities
Potential ordinary share - financial instrument or other contract that may entitle its holder to ordinary share
Financial instrument - any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity
Warrants or options - financial instruments that give the holder the right to purchase ordinary shares
UNOR - College of Business and Accountancy
17 September 2016 Slide 35
Formula •
•
Net income - after deducting dividends on preference shares
•
Preference share is cumulative - current year only is deducted, whether dividends are declared or not
•
Preference share is noncumulative - current year only is deducted if there is only dividend declaration
•
If there is significant change during the year weighted average number of ordinary share capital 17 September 2016 UNOR - College of Business and Accountancy Slide 36 is the denominator
Illustration 6 An entity provided the following information for the current year: Preference share capital, P100 par, 10% P1,000,00 cumulative Ordinary share capital, P100 par, 50,000 shares Income from continuing operations Income form discontinued operations Net income
0 5,000,000 P1,500,00 0 500,000 P2,000,0 0
Required: Compute for the earnings per share.
UNOR - College of Business and Accountancy
17 September 2016 Slide 37
Illustration 6
(Cont’d)
Computation: Income from continuing operations Preference dividend for current year (10% x P1,000,000) Net income
P1,500,000 (100,000) P1,400,00
Basic earnings per share Income from continuing operations (P1.4mil. ÷ 50,000sh) Income from discontinued operation (P0.5mil. ÷ 50,000sh) Net income UNOR - College of Business and Accountancy
P28 10 P38 17 September 2016 Slide 38
Uses of earnings per share •
Determinant of market price of ordinary shares (attractiveness of the ordinary share as an investment)
•
Measure of performance
•
Basis of dividend policy
UNOR - College of Business and Accountancy
17 September 2016 Slide 39
Illustration 7 An entity had the following capital structure at the end of the current year: Preference share capital, P100 par, 40,000 P2,000,00 shares issued and outstanding 0 Ordinary share capital, P50 par, 80,000 shares issued and outstanding
8,000,000
Net income for the year
3,000,000
The preference dividend rate is 10% and the preference share is nonconvertible but cumulative and fully participating. Dividends paid to ordinary shareholders is P20 per share. UNOR - College of Business and Accountancy
17 September 2016 Slide 40
Illustration 7
(Cont’d) Preference
Ordinary
Basic dividend: Preference (10% x P2,000,000)
P200,000
Ordinary (80,000 x P20) Balance for participation Total dividends Net income
P1,600,000 240,000
960,000
P440,000
P2,560,000 P3,000,000
Basic dividend (P200,000 + P1,600,000) Balance for participation
(1,800,000) P1,200,000
Basic earnings per share Preference share (P440,000 ÷ 40,000 shares)
P11
Ordinary share (P2,560,000 ÷ 80,000 shares)
32
UNOR - College of Business and Accountancy
17 September 2016 Slide 41
Determination of weighted average •
Ordinary shares in exchange for cash are included when cash is receivables.
•
Ordinary shares issued as a result of the conversion of a debt instrument to ordinary shares are included from the date that interest ceases to accrue.
•
Ordinary shares issued in place of interest or principal on other financial instruments are included form the date that interest ceases to accrue.
•
Ordinary shares issued in exchange for the settlement of a liability of the entity are included from the settlement date.
•
Ordinary shares issued as a consideration for the acquisition of an asset other than cash are included as of the date on which the acquisition is recognized.
UNOR - College of Business and Accountancy
17 September 2016 Slide 42
Determination of weighted average
(Cont’d)
•
Ordinary shares issued for the rendering of services to the entity are included as the services are rendered.
•
Ordinary shares issued as part of the purchase consideration of a business combination that is an acquisition are included in the weighted average number of shares from the date of acquisition.
•
Ordinary shares that will be issued upon the conversion of a mandatory convertible instrument are included in the calculation of basic earnings per share from the date the contract entered into.
•
In the case of a stock dividend or a share split, ordinary shares are issued to existing shareholders for no additional consideration.
UNOR - College of Business and Accountancy
17 September 2016 Slide 43
Determination of weighted average
(Cont’d)
The number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period reported. •
Subscribed ordinary shares or partly paid shares are included in EPS to the extent that they are entitled to participate in dividends. (Corporation Code of the Philippines - entitled to participate fully in dividends; the law prevails)
UNOR - College of Business and Accountancy
17 September 2016 Slide 44
Illustration 8
January 1
Beginning balance
100,000 shares
May 1
Additional issuance
150,000 shares
September 1
Additional issuance
150,000 shares
Total shares outstanding
UNOR - College of Business and Accountancy
400,000 shares
17 September 2016 Slide 45
Illustration 8
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Months outstanding
Peso month
Jan. 1
100,000
12
May 1
150,000
8
1,200,000
Sep. 1
150,000
4
600,000
P1,200,000
3,000,000 Average share (P3,000,000 ÷ 12)
UNOR - College of Business and Accountancy
250,000 shares
17 September 2016 Slide 46
Illustration 8
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
100,000
12/12
100,000
May 1
150,000
8/12
100,000
Sep. 1
150,000
4/12
50,000 250,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 47
Illustration 9
January 1
Beginning balance
March 1
Issued for cash
50,000 shares
July 1
20% stock dividend
30,000 shares
November 1
Treasury shares Total shares outstanding
UNOR - College of Business and Accountancy
100,000 shares
(15,000 shares) 165,000 shares
17 September 2016 Slide 48
Illustration 9
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Mos. outstading
Peso month
Jan. 1
120,000
12
P1,440,000
Mar. 1
60,000
10
600,000
Nov. 1
(15,000)
2
(30,000)
Average share (P2,010,000 ÷ 12)
UNOR - College of Business and Accountancy
2,010,000 167,500 shares
17 September 2016 Slide 49
Illustration 9
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
120,000
12/12
120,000
Mar. 1
60,000
10/12
50,000
Nov. 1
(15,000)
2/12
(2,500) 167,500
UNOR - College of Business and Accountancy
17 September 2016 Slide 50
Illustration 10
January 1
100,000 shares issued and outstanding
April 1
Issued 50,000 new shares
June 1
Share split 2 for 1
July 1
Purchased 20,000 treasury shares
October 1
20% stock dividends
December 31
Share split 5 for 1
UNOR - College of Business and Accountancy
17 September 2016 Slide 51
Illustration 10
(Cont’d)
(a)
(b)
(a x b)
Date
Shares
Mos. outstading
Peso month
Jan. 1
1,200,000
12
Mar. 1
600,000
9
5,400,000
Nov. 1
(120,000)
6
(720,000)
Average share (P19,080,000 ÷ 12)
UNOR - College of Business and Accountancy
P14,400,000
19,080,000 1,590,000 shares
17 September 2016 Slide 52
Illustration 10
(Cont’d)
ANOTHER APPROACH: Date
Shares
Fraction
Average shares
Jan. 1
1,200,000
12/12
Apr. 1
600,000
9/12
450,000
Jul. 1
(120,000)
6/12
(60,000)
1,200,000
1,590,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 53
Bonus issue •
Ordinary shares are issued to existing shareholders for no consideration.
•
Stock dividend
•
Adjusted proportionate for the proportionate change in the number of ordinary shares outstanding as if occurred at the beginning of the year
UNOR - College of Business and Accountancy
17 September 2016 Slide 54
Illustration 11 Net income - 2015
7,200,000
Net income – 2016
6,000,000
Ordinary share outstanding on January 1, 2015
200,000
On October 1, 2016, the entity implemented a bonus issue of ordinary shares in the ratio of two ordinary shares for each ordinary share.
UNOR - College of Business and Accountancy
17 September 2016 Slide 55
Rights issue •
Exercise price is less than the fair value of the shares
•
Include a bonus element - no consideration
•
Stock right or right of preemption
•
Adjustment factor is the ratio of the market value of the right-on to the theoretical market value of the share ex-right
•
Market value of the share right-on - market value of the share immediately prior to the exercise of rights.
•
Problem - if ex-right
•
Market value of the share ex-right – total market value of the shares outstanding plus the proceed 17 September 2016 UNOR from - College the of Business and Accountancy exercise of rights divided by the numberSlide of 56
Diluted earnings per share Concept of dilution Potential ordinary shares Procedures for treasury share method Multiple potential ordinary share
UNOR - College of Business and Accountancy
3
17 September 2016 Slide 57
Illustration 14 An entity had the following securities outstanding at the beginning of the current year: 10% convertible bonds payable, each P1,000 bond convertible into 10 ordinary P4,000,00 shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 5,000,000 Income tax rate 30% Assume that the convertible bond payable is issued on April 1 of the current year. In this case, all conversion computations will be made for nine months only, from April 1 to December 31 of the current year. 17 September 2016
UNOR - College of Business and Accountancy
Slide 58
Illustration 15 An entity had the following securities outstanding at the beginning of the current year: 10% convertible bonds payable, each P1,000 bond convertible into 10 ordinary P4,000,00 shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 5,000,000 Income tax rate 30% All of the bonds were converted into ordinary shares on October 1 of the current year. UNOR - College of Business and Accountancy
17 September 2016 Slide 59
Illustration 16 An entity had the following securities outstanding at the beginning of the current year: 10% convertible cumulative preference share capital , P100 par, 30,000 shares one preference share is convertible into P3,000,00 two ordinary shares 0 Ordinary share capital, P100 par, 250,000 10,000,00 shares authorized, 100,000 shares issued 0 Net income 6,000,000
UNOR - College of Business and Accountancy
17 September 2016 Slide 60
Illustration 17 An entity had the following securities outstanding at the beginning of the current year: Preference share capital – 10%, 50,000 shares, P100 par, cumulative and P5,000,00 convertible into 100,000 ordinary shares 0 Ordinary share capital, P50 par, 500,000 shares authorized, 200,000 shares issued
10,000,00 0
Net income
4,000,000
The preference shares were all converted into ordinary shares on October 1 of the current year. The preference dividends for the entire year were paid in 17 September 2016 full before the conversion. UNOR - College of Business and Accountancy
Slide 61
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