SFRS(I) 1-33 prescribes principles for the determination and presentation of earnings per share (EPS), one of the most widely used performance measures and a figure presented on the face of the statement of profit or loss. EPS reduces a company's profit to a per-share amount, improving comparison of performance between entities for the same period and between periods for the same entity. It is the Singapore equivalent of IAS 33 under IFRS, and is in substance IAS 33 as applied in Singapore.
Objective and scope
The objective is to prescribe principles for the determination and presentation of earnings per share. The standard applies to entities whose ordinary shares or potential ordinary shares are publicly traded (or in the process of being issued) — which, in Singapore, principally means SGX-listed companies — and to any entity that chooses to disclose EPS. Where both consolidated and separate financial statements are presented, the EPS disclosures are required only on the consolidated basis.
Basic earnings per share
Basic EPS is calculated by dividing the profit or loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. The numerator is profit attributable to the parent after deducting preference dividends. The denominator time-weights shares issued or bought back during the period. Where the number of shares changes without a corresponding change in resources (a bonus issue or share split), the weighted average is adjusted for all periods presented as if the event had occurred at the beginning of the earliest period.
Diluted earnings per share
Certain instruments — convertible bonds, convertible preference shares, options, and warrants — could result in additional ordinary shares being issued, diluting existing holders' EPS. Diluted EPS shows EPS after taking into account the effect of all dilutive potential ordinary shares. It is calculated by adjusting the numerator (for the after-tax effect of dividends or interest on the dilutive instruments) and the denominator (increased by the additional shares that would be issued on conversion). Only dilutive instruments (those whose conversion would decrease EPS) are included; anti-dilutive instruments are ignored.
Presentation
An entity presents, on the face of the statement of profit or loss, basic and diluted EPS for profit or loss from continuing operations and for profit or loss attributable to the ordinary equity holders of the parent, with equal prominence, for all periods presented. Where there is a discontinued operation, EPS for it is also presented (on the face or in the notes).
A worked example
A Singapore-listed company has a S$5,000,000 profit, S$500,000 preference dividends, 9,000,000 ordinary shares all year, and convertible bonds that would add 1,000,000 shares and save S$100,000 after-tax interest if converted:
| Measure | Numerator (S$) | Denominator (shares) | EPS (S$) |
|---|---|---|---|
| Basic EPS | 4,500,000 (5,000,000 − 500,000 pref div) | 9,000,000 | 0.50 |
| Diluted EPS (bonds dilutive) | 4,600,000 (+100,000 after-tax interest) | 10,000,000 (+1,000,000 on conversion) | 0.46 |
Basic EPS is S$0.50. Testing the bonds: diluted EPS would be (S$4,500,000 + S$100,000) ÷ (9,000,000 + 1,000,000) = S$0.46. Since S$0.46 is below the basic S$0.50, the bonds are dilutive and included, so diluted EPS of S$0.46 is presented alongside basic EPS of S$0.50.
How SFRS(I) 1-33 relates to IFRS
SFRS(I) 1-33 is identical to IAS 33 under IFRS — the same definitions of basic and diluted EPS, the same use of weighted average shares, the same treatment of dilutive versus anti-dilutive instruments, the same adjustment for bonus issues and share splits, and the same presentation on the face of the statement of profit or loss. An entity familiar with IAS 33 will find SFRS(I) 1-33 to be the same standard.
Common pitfalls
Recurring issues include failing to deduct preference dividends from the numerator; not time-weighting shares issued or bought back during the period; not adjusting prior-period EPS for bonus issues or share splits; including anti-dilutive instruments in diluted EPS; and not presenting basic and diluted EPS with equal prominence, including for continuing operations and in loss-making periods.
Why this is cleaner on a unified system
Computing EPS reliably requires accurate data on profit (split between continuing and discontinued operations), preference dividends, and movements in share capital during the period — far easier when the equity records (share issues, buybacks, convertible instruments) and the ledger sit in one connected system. When profit and the weighted average share count are drawn from a single source of truth, calculating basic and diluted EPS is more straightforward than assembling the figures from separate registers — especially where a company also administers equity instruments such as share options, whose potential dilution feeds directly into diluted EPS.
This article is a detailed educational summary of SFRS(I) 1-33 in plain language. It is not a substitute for the full text of the standard. Accounting standards are amended from time to time; always verify the current, authoritative text of SFRS(I) 1-33 as issued by the Singapore Accounting Standards Council before relying on it, and consult a qualified professional accountant for application to your specific circumstances.