Sky plc, formerly British Sky Broadcasting Group plc, is a pan-European pay television giant and multimedia content

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Sky plc, formerly British Sky Broadcasting Group plc, 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, 2017, from its website (http://corporate.sky.com). We know from the annual report that the company's shares traded at £8.73 per share at the beginning of its 2017 fiscal year and at £9.94 per share at June 30, 2017. 


Instructions 

a. Determine how the company has calculated the 2017 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. 

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 treasury stock method for 2017. (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? Why or why not?

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Related Book For  book-img-for-question

Intermediate Accounting Volume 2

ISBN: 9781119497042

12th Canadian Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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