AS 20 - Adjustment of EPS
This query is : Resolved
11 November 2008
Hi All,
I have a doubt in AS 20. In case a company is incorporated on 7th Jan and the books are closed on 30th March, should the EPS that we calculate be adjusted for the entire year...since it would normally be only for 3 months since the operations were carried out only for 3 months.
I have a doubt in AS 20. In case a company is incorporated on 7th Jan and the books are closed on 30th March, should the EPS that we calculate be adjusted for the entire year...since it would normally be only for 3 months since the operations were carried out only for 3 months.
11 November 2008
pl go through the example given as appendix 1 to Accounting Standard AS 20, which deals with the same issue. You have to give weightage to the period for which the capital is in the company.
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