Earning Per Share

1. AS- 20 Earning Per Share ccounting tandards

2. Presented by Sagar Chopra {11} Nikki Dhurva {17} Ganesh Gaggar {22} Kushal Gada {25} Huzaifa Indorie {27} Jitesh Jain {43} Brijesh Mishra {49}

3. EPS is used particularly by investors and analysts to assess the performance of a company over a period of time , and to compare the performance of a company with that of other companies

6. What is Weighted Average Number of Equity Shares ?

8. Solution: 13,184 Total 252 92/365 = 0.25205 1/10/05 (5/10) X 2000 = 1,000 2000 (partly paid) 2932 214/365 = 0.5863 1/06/05 5,000 5,000 (fully paid) 10,000 365/365 = 1 1/1/05 10,000 10,000 (fully paid) weighted Average No. of shares Time-weighting-factor Effective date No. of shares equivalent to a fully paid up share No. of shares

9. Right Issue In right issue the shares are issued at a price which is lower then market price.

13. Anti-dilution is an increase in EPS or a reduction in loss per share resulting from the assumption that convertible instruments are converted, that debentures or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions. Anti-dilution

16. This std. encourages an enterprise to provide description of equity share transaction other than bonus issue

19. COMPARISON BETWEEN AS-20, IAS-33 AND US GAAP PARTICULAR AS-20 IAS-33 US GAAP PRESENTATION PROFIT & LOSS A/C INCLUDE EXTRAORDINARY ITEMS AN ENTERPRISE PRESENT BOTH BASIC EPS & DILUTED EPS ON CONTINUING OPERATION, DISCONTINUED OPERATION, EXTRAORDINARY ITEM BASIC EPS – MANDATORILY CONVERTIBLE INSTRUMENT THERE IS NO SPECIFIC STIPULATION IN AS-20 AN ENTERPRISE SHOULD INCLUDE IN THE CALCULATION OF BAISC EPS IS SAME AS THOSE STIPULATED IN IAS-33 DILUTED EPS – CONTRACTS THAT MAY BE SETTLED IN EQUITY SHARE OR CASH AT THE DISCRETION OF ISSUER THERE IS NO SPECIFIC STIPULATION IN AS-20 AN ENTER PRISE OPTION, IN CALCULATING THE DILUTED EPS IS SAME AS THOSE STIPULATED IN IAS-33

20. BASIC EPS – FUNDAMENTAL PRINCIPLE DIVIDING THE NET PROFIT OR LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY SAHRHOLDER SAME AS AS-20 SAME AS AS-20 BASIC EPS – RIGHT ISSUE ADJUSTED FOR THE BONUS ELEMENT IN RIGHT ISSUE SAME AS AS-20 SAME AS AS-20 DILUTED EPS- POTENTIAL EQUITY SHARE CONVERSION INTO EQUITY SHARE WOULD DECREASE EPS OR INCREASE LOSS PER SHARE SAME AS AS-20 SAME AS AS-20 DILUTIVE EPS – FUNDAMENTAL PRINCIPLE POTENTIAL EQUITY SHARE HAS BEEN CONVERTED INTO EQUITY SHARE SAME AS AS-20 SAME AS AS-20