Sky plc Sky plc, formerly British Sky Broadcasting Group ple, is a pan-European pay television giant and
Question:
Sky plc Sky plc, formerly British Sky Broadcasting Group ple, is a pan-European pay television giant and multimedia content company whose common shares trade on the London Stock Exchange. The company produces financial statements in accordance with IFRS. Access the company's annual report for the year ended June 30, 2015 from its website (http://corporate.sky.com). We know from the annual report (page 119) that the company's shares traded at £8.93 per share at the beginning of its 2015 fiscal year and at £10.66 per share at June 30, 2015.
Instructions
(a) Determine how the company has calculated the 2015 basic and diluted earnings per share and verify the calculations, where possible. That is, verify (by examining the relevant notes) the number of shares outstanding, adjustments made to the ordinary shares, and the dilutive shares added. Note any information that is missing in order for you to make this determination. Using the share prices disclosed in the question, determine why the company has concluded that there are no items that are antidilutive.
(b) Assume that all conditions have been met for share option awards. Determine the number of shares that would be added for the dilution using the trea- sury stock method for 2015. (Note any assumptions you make.)
(c) Sky has also disclosed other information on a per share basis. Explain this other per share data. Why has the company provided this information? If you were an investor, would you find it useful?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy