## Bonus Shares, Share Splits, and Share Consolidation
### Why Special Treatment?
Bonus shares (and splits/consolidations) involve no cash inflow — the company merely subdivides or consolidates existing equity. Earnings are unchanged but the share count changes, making EPS non-comparable across periods unless adjusted.
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### AS 20 Rule
> Bonus shares are assumed to have been outstanding from the beginning of the earliest period presented, regardless of the actual date of issue.
This means:
- Current year WANES: Include bonus shares for the full year (no time-weighting by issue date).
- Prior year WANES: Restate prior year EPS to include the bonus shares — so comparatives remain meaningful.
The same rule applies identically to share splits and share consolidations (reverse splits).
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### Two EPS Figures Reported for the Prior Year
| Version | WANES Used | Purpose |
|---|---|---|
| Original EPS | Pre-bonus shares only | Historical record |
| Restated EPS | Pre-bonus + bonus shares | Comparability with current year |
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### Comparison: Cash Issue vs. Bonus Issue
| Feature | Cash Issue | Bonus Issue / Split |
|---|---|---|
| Cash received? | Yes | No |
| Date of issue relevant for weighting? | Yes | No — always full year |
| Prior year EPS restated? | No | Yes |
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### If Bonus is Issued During the Year
For current year EPS, add the bonus shares to WANES from 1 Jan (start of the period), not from the actual issue date. The month of issue is irrelevant.