EPS (AS-20)

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CS Asmita Mehta (Querist)
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07 April 2009 What will be the EPS in this case:

Earnings attributable to equity share holders : Rs.100000

Number of equity share o/s during the year : 1000

(face value Rs. 10 each)

Out of above equity share on 200 shares final call money @ Rs 2 is due but not received(calls in arrears)

Indirectly what i want to know that wheather shares on which calls are due but not received will be considered for EPS calculation or not ????????

Plz give ur answer in the light of AS-20 and maintion PERA NO. if possible.......

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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07 April 2009
As per companies Act, Calls in Arrears can be collected with interest if the board of directors or the original issue conditions of shares allows for payment of calls in arrears along with interest.

As per para 20 of the Accounting standard 20 Where an enterprise has equity shares of different nominal values bu with the same dividend rights, the number of equity shares is calculated by converting all such equity shares into equivalent number of shares of the same nominal value.

Further as per companies act eventhough calls are in arrears they are eligible for dividend. Therefore para 20 should be applied here.

Therefore all the shares are to considered for calculating EPS.

CS Asmita Mehta

CS Asmita Mehta (Querist)
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07 April 2009 But sir as per the companies act such shareholders will be elegible for dividend to the extent of amount paid-up on the such shares....
will it make any difference in ur answer???????