Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

Registered by

Ministry of Justice of Ukraine

July 30, 2001

No. 647/5838

ORDER OF THE MINISTRY OF FINANCE OF UKRAINE

of July 16, 2001 No. 344

About approval of the National provision (standard) of the financial accounting 24 "Profit per share"

(as amended on 29-09-2020)

In pursuance of the Program of reforming of the system of financial accounting using international standards approved by the resolution of the Cabinet of Ministers of Ukraine of October 28, 1998 No. 1706, and according to articles 1 and 6 of the Law of Ukraine "About financial accounting and the financial reporting in Ukraine" PRIKAZYVAYU:

Approve the National provision (standard) of the financial accounting 24 "Profit per share" approved by Methodological council on financial accounting of the Ministry of Finance of Ukraine which is applied.

 

Deputy minister

V. V. Reguretsky

Approved by the Order of the Ministry of Finance of Ukraine of July 16, 2001 No. 344

National provision (standard) of the financial accounting 24 "Profit per share"

General provisions

1. National provision (standard) of the financial accounting 24 "Profit per share" (further - the National provision (standard) 24) determines methodological bases of forming of information on net profit on one common share and its disclosure in the financial reporting.

2. Regulations of the National provision (standard) 24 are applied by open joint stock companies, except those which according to the legislation constitute the financial reporting under International Financial Reporting Standards (further - societies).

3. Terms which are used in provisions (standards) of financial accounting have such value:

The anti-diluting potential common share - the financial instrument or other agreement which converting in common shares will lead to increase in net profit (reduction of net loss) at one common share from regular activities in the future.

The potential common share - the financial instrument or other agreement granting the right to common shares.

The diluting potential common share - the financial instrument or other agreement which converting in common shares will lead to reduction of net profit (increase in net loss) by one common share from regular activities in the future.

The annual average number of common shares - the weighted average number of common shares which were in circulation within accounting year.

The corrected net profit (loss) - net profit (loss) after deduction of preferred share dividends, corrected on influence of the diluting common shares.

The corrected annual average quantity simple the aktsiysrednegodovy number of common shares in the address, corrected on the number of potential common shares.

The financial instrument - the contract which at the same time leads to emergence (increase) of financial asset at one company and the financial liability or the tool of equity at another.

The hour weighed coefficient - private from division of total quantity of days (months) during which shares were in circulation, on total quantity of days (months) in reporting year.

 

Net profit (loss) on one common share

4. The net profit (loss) on one common share is determined by division of difference between the amount of net profit (loss) and the amount of preferred share dividends on the annual average number of common shares in the address.

5. The annual average number of common shares in the address is determined by the amount of works of number of common shares in the address during the certain periods in days (months) and the corresponding hour weighed coefficients. The number of common shares in the address is determined by data of the shareholder register. The example of calculation of annual average number of common shares is given in appendix 1 to the National provision (standard) 24.

6. Date of inclusion of common shares which release is registered to calculation of annual average number of common shares in the address is considered:

6.1. which payment of release will be performed by money, - date of emergence of accounts receivable;

6.2. which payment will be performed by others, than money, assets, - date of recognition of asset by society;

6.3. which payment will be performed by provision of services to society, - date of provision of services;

6.4. which are intended for dividend payout by shares, - date of accomplishment of obligations concerning dividend payout to shareholders;

6.5. which are intended for converting of the financial liability or for interest payment according to this financial liability, - date of the termination of charge of percent or (in case of lack of percent) repayment date of the financial liability;

6.6. which are intended for repayment of the obligation of society, - repayment date of the obligation;

6.7. which are intended for partial payment of acquisition of other company, - date of acquisition;

6.8. which release depends on accomplishment of certain conditions (the share with the postponed placement), - date of accomplishment of necessary conditions.

7. The number of common shares for calculation of net profit (loss) on one common share in case of business merger is determined by the cumulative annual average number of common shares of the consolidated enterprises corrected to equivalent of common shares of society which shares are in circulation after the business merger.

 

The corrected net profit (loss) on one common share

8. The corrected net profit (loss) on one common share is determined by division of the corrected net profit (loss) into the corrected annual average number of common shares in the address. The size of the corrected net profit (loss) is indicator of the greatest possible extent of reduction of profit (increase in loss) by one common share of society in case of converting of the diluting potential common shares without the corresponding increase in assets of society.

9. For calculation of the corrected net profit (loss) on one common share such calculations are perfromed:

9.1. the net profit (loss), less preferred share dividends, increases by the amount of the dividends (after tax payment and percent) recognized in the accounting period of rather diluting potential common shares and increases or decreases by the amount of other changes in the income or expenses which will arise in case of converting of the diluting potential common shares. Preferred share dividends, interests paid on the bonds planned to converting, and so forth can be the income or expenses which belong to converting of potential common shares;

9.2. the annual average number of common shares in the address increases by the annual average number of common shares which will arrive in the address in case of converting of all diluting potential common shares. The diluting potential common shares join in calculation of annual average number of common shares in the address for the period in which these shares were in circulation in reporting year. Calculation is perfromed on each class and release of common shares.

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