Aviva 2014 Annual Report Download - page 163

Aviva plc Annual report and accounts 2014
159
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 attributable to ordinary shareholders is:
2014 2013
Continuing 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 2,173 108 2,281 2,049 (768) 1,281
Tax attributable to shareholders' profit (561) (40) (601) (534) 131 (403)
Profit/(loss) for the year 1,612 68 1,680 1,515 (637) 878
Amount attributable to non-controlling interests (143) (26) (169) (174) 31 (143)
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) (69) — (69) (70) — (70)
Profit/(loss) attributable to ordinary shareholders from continuing
operations 1,383 42 1,425 1,254 (606) 648
Profit attributable to ordinary shareholders from discontinued operations
—
58 58 207 1,066 1,273
Profit attributable to ordinary shareholders 1,383 100 1,483 1,461 460 1,921
(ii) Basic earnings per share is calculated as follows:
2014 2013
Continuing 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 2,173 1,383 47.0 2,049 1,254 42.6
Non-operating items:
Investment return variances and economic assumption changes on long-term
business 72 4 0.1 (49) (142) (4.8)
Short-term fluctuation in return on investments backing non-long-term business 261 197 6.7 (336) (254) (8.6)
Economic assumption changes on general insurance and health business (145) (114) (3.9) 33 27 0.9
Impairment of goodwill, joint ventures and associates and other amounts
expensed (24) (24) (0.8) (77) (77) (2.6)
Amortisation and impairment of intangibles (90) (61) (2.1) (91) (65) (2.2)
Profit on disposal and remeasurement of subsidiaries, joint ventures and
associates 174 170 5.8 115 220 7.4
Integration and restructuring costs and exceptional items (140) (130) (4.4) (363) (315) (10.7)
Profit attributable to ordinary shareholders from continuing operations 2,281 1,425 48.4 1,281 648 22.0
Profit attributable to ordinary shareholders from discontinued operations 58 58 2.0 1,538 1,273 43.3
Profit attributable to ordinary shareholders 2,339 1,483 50.4 2,819 1,921 65.3
1 DCI includes direct capital instruments and fixed rate tier 1 notes
(iii) The calculation of basic earnings per share uses a weighted average of 2,943 million (2013: 2,940 million) ordinary shares in
issue, after deducting shares owned by the employee share trusts. The actual number of shares in issue at 31 December 2014 was
2,950 million (2013: 2,947 million) and 2,948 million (2013: 2,938 million) excluding shares owned by the employee share trusts.
Aviva plc Annual report and accounts 2014 |159
IFRS Financial statements