Aviva 2013 Annual Report Download - page 157

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Aviva plc
Annual report and accounts 2013
155
Notes to the consolidated financial statements continued
15 – Earnings per share
This note shows how we calculate earnings per share, based both on the present shares in issue (the basic earnings per share)
and the potential future shares in issue, including conversion of share options granted to employees (the diluted earnings per
share). We have also shown the same calculations based on our operating profit as we believe this gives a better indication of
operating performance.
(a) Basic earnings per share
(i) The profit/(loss) attributable to ordinary shareholders is:
2013
Restated1
2012
Continuin
g
operations
Operating
profit
£m
Non-
operating
items
£m
Total
£m
Operating
profit
£m
Non-
operating
items
£m
Total
£m
Profit/(loss) before tax attributable to shareholders' profits 2,049 (768) 1,281 2,038 (1,970) 68
Share of Delta Lloyd's tax expense as an associate — — — (28) 135 107
Profit/(loss) before tax 2,049 (768) 1,281 2,010 (1,835) 175
Tax attributable to shareholders' profit/(loss) (534) 131 (403) (499) 238 (261)
Profit/(loss) for the year 1,515 (637) 878 1,511 (1,597) (86)
Amount attributable to non-controlling interests (174) 31 (143) (184) 16 (168)
Cumulative preference dividends for the year (17) — (17) (17) — (17)
Coupon payments in respect of direct capital instruments (DCI) and
fixed rate tier 1 notes (net of tax) (70) — (70) (55) — (55)
Profit/(loss) attributable to ordinary shareholders from
continuing operations 1,254 (606) 648 1,255 (1,581) (326)
Profit/(loss) attributable to ordinary shareholders from
discontinued operations 207 1,066 1,273 161 (3,009) (2,848)
Profit/(loss) attributable to ordinary shareholders 1,461 460 1,921 1,416 (4,590) (3,174)
1 Restated for the adoption of revised IAS19. See note 1 for further details.
(ii) Basic earnings per share is calculated as follows:
2013
Restated2
2012
Continuin
g
operations
Before tax
£m
Net of tax,
non-
controlling
interests,
preference
dividends
and DCI1
£m
Per share
p
Before tax
£m
Net of tax,
non-
controlling
interests,
preference
dividends
and DCI1
£m
Per share
p
Operating profit attributable to ordinary shareholders 2,049 1,254 42.6 2,038 1,255 43.1
Non-operating items:
Investment return variances and economic assumption changes on life business (49) (142) (4.8) (620) (499) (17.1)
Short-term fluctuation in return on investments backing non life business (336) (254) (8.6) 7 9 0.3
Economic assumption changes on general insurance and health business 33 27 0.9 (21) (16) (0.6)
Impairment of goodwill, associates and
j
oint ventures (77) (77) (2.6) (60) (60) (2.1)
Amortisation and impairment of intangibles (91) (65) (2.2) (128) (84) (2.9)
Profit/(loss) on disposal and remeasurement of subsidiaries,
j
oint ventures
and associates 115 220 7.4 (164) (164) (5.6)
Integration and restructuring costs and exceptional items (363) (315) (10.7) (461) (379) (13.0)
Share of Delta Lloyd's non-operating items (before tax) as an associate — — — (523) (388) (13.3)
Share of Delta Lloyd's tax expense, as an associate — — — 107 — —
Profit/(loss) attributable to ordinary shareholders from
continuing operations 1,281 648 22.0 175 (326) (11.2)
Profit/(loss) attributable to ordinary shareholders from
discontinued operations 1,538 1,273 43.3 (2,696) (2,848) (97.9)
Profit/(loss) attributable to ordinary shareholders 2,819 1,921 65.3 (2,521) (3,174) (109.1)
1 DCI includes direct capital instruments and fixed rate tier 1 notes.
2 Restated for the adoption of revised IAS19. See note 1 for further details.
(iii) The calculation of basic earnings per share uses a weighted average of 2,940 million (2012: 2,910 million) ordinary shares in
issue, after deducting shares owned by the employee share trusts. The actual number of shares in issue at 31 December 2013 was
2,947 million (2012: 2,946 million) and 2,938 million (2012: 2,936 million) excluding shares owned by the employee share trusts.