ACCOUNTING STANDARD.ppt (Size: 73 KB / Downloads: 113)
to set principles for the determination & presentation of EPS.
to improve comparison of performance amongst enterprises for the same period and amongst different accounting periods for the same enterprise.
Enterprises whose equity shares or potential equity share are listed on Recognized Stock Exchange.
Other enterprises which disclose earnings per share in financial statements.
In the case of consolidated financial statements it should be determined & presented based on consolidated information
Measurement of Diluted EPS
( C ) = Net profit or loss attributable to equity shares adjusted for the following net of tax:
any dividend on dilutive potential equity shares which has been deducted in arriving profit/loss.
any interest relating to dilutive potential equity shares
any other change in expense or income that would result from the conversion of dilutive potential equity shares.
The amount used as numerators and If the same is not reported as a line item in the P&L Account, a reconciliation should be provided.
The weighted average number of equity shares used as denominators for basic and diluted EPS and a reconciliation of those to each other.
The nominal value alongwith EPS figures
If an enterprise wishes to disclose more information, the denominator must be as per this statement
Objective of reporting diluted EPS.
Dividend on cumulative preference shares not provided for during the earlier years and this year, but shown as contingent liability, what is the treatment in adjustment of profit or loss.
Where basic and diluted EPS is same, whether both need be disclosed?
Receipt of share application money and allotments of shares subsequent to the date of Balance Sheet. Effect thereof?
As-20 whether applicable to consolidated financial statements