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Calculation of EPS


19 July 2010 Dear Experts,
I am auditing an closely held company. We have to calculate EPS for that. They also have issued bonus shares in the middle of the year.
While calculating bonus shares....
We have to deduct the following from the Net Profit as computed in the P&L account.(There are no preference share holders)
Provision for Tax
Deferred Tax Liability (If there is deferred tax asset should we have to add?)
Dividend Distribution Tax
Transfer to General Reserve
With regards,
Rajesh


20 July 2010 EPS is the earnings that add to the wealth of shareholders. i.e. profits after all tax provisions but before reserves.


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