PAS 33

Earnings per share (EPS) is the portion of a company’s income allocated to the

outstanding shares in the period. Hence, EPS is calculated by dividing the company’s net profit

to the weighted average number of company’s outstanding shares. AllHome Corporation’s

Statement of Comprehensive Income, in page 79, presents the company’s three successive

basic and diluted earnings per share from 2017 to 2019. The company shows a promising

increase in profitability from 2017 to 2018 but by 2019 shows 0.01 increase in earnings per

share despite the fifty percent increase in income.

PAS 34

An interim financial report, similar to an annual financial report, includes a full collection

of financial statements, however, can also be presented as simplified or condensed financial

statements. It shall include the entity’s Statement of Financial Position, Statement of Profit or

Loss, Statement of Changes in Owner’s Equity, Statement of Cash Flows and Selected

Explanatory Notes. It is prepared in an interim period of quarterly or semi-annually, provided it’s

shorter than a full fiscal year. Recognition of interim report uses similar accounting policies as

an annual financial report, but differs as two extreme approaches to interim report can be used.

Integral view considers each interim period as a portion of the annual period, while discrete view

considers interim period as separate accounting period. The interim report is measured on a

year-to-date basis, in reference to the reporting period used by the entity. Preparing interim

report helps reassure executives and shareholder of the entity’s condition, whether the entity is

progressing or failing, and provide current information to future investors.

AllHome, Corp prepared no interim report and was not mandated to prepare such

financial statements.
PAS 36

PAS 36 addresses the relationship between an entity’s assets, cash generating unit and

fair value less costs of disposal (FVLCD) or value in use (VIU) in which presence of impairment

is feasible. An asset is considered impaired when the asset’s carrying amount (i.e., cost of an

asset less accumulated depreciation) exceeds its recoverable amount. Impairment may

manifest in significant changes of external and internal events such as decline in market value,

increase in interest rates or asset’s physical damage. To make sure assets are correctly

accounted for, they are tested for impairment by means of looking at its carrying amount and

recoverable amount. If either FVLCD or VIU is higher than the asset’s carrying amount, then no

alteration is made. However, if the highest amount between FVLCD and VIU is less than the

carrying amount, then impairment loss is measured by subtracting the asset’s carrying amount

to FVLCD or VIU. The impairment loss is recorded as expense in the period and the asset is

revised. Reversal of impairment loss is made when reassessment of the impaired asset in a

future reporting period shows impairment no longer exist or decreased.

The AllHome, Corp. recognized impairment of its assets in the Statement of Financial

Position and Statement of Comprehensive Income. All Home Corp.’s property and equipment

are individually tested for impairment while cash-generating units are tested as a group. The

entity reassessed all previous recognized impaired assets for any shows changes in

impairment.