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Diluted Earnings Per Share

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(Querist)
02 February 2009 1)Meaning of Diluted Earnings Per Share
2)Formula for Computing Diluted Earnings per share
3)Is it mandatory to compute Diluted Earnings per Share as per Accounting Standards issued by ICAI?
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CA. B.SRINIVASULU

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CA. B.SRINIVASULU (Expert)
02 February 2009 Profit after taxes is the earnings of the company.

Diluted earnings means how much of the above profit has been distributed as dividend, and how much has been adjusted towards earlier losses.

Dividend + amounts ajdusted against earlier losses divided by no of shares.

Yes it is mandatory to compute diluted earnings per share as per accounting standard.
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