EPS -AS20

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Akash Deep (Querist)

10 June 2009 In 07-08 profit was 20 lac.
No. of shares 15,000 for 10 months, 20,000 for remaining two months as 5000 additional shares were issued for cash.
No. of shares (Avg.)= 15833 shares
EPS:- Rs. 126.32

Now, in 08-09, profit is 25 lac.
No. of shares 20,000 for 12 months
EPS:-Rs. 125

PROBLEM IS FOR THE RESTATED EPS IN BALANCE SHEET FOR PREVIOUS YEAR 07-08, WHAT IS THE NO. OF SHARES FOR 07-08 ???

whether take 20,000 shares issued for whole 12 months in 07-08, or to take 15,000 shares for 10 months and 5,000 shares for 2 months.

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)

10 June 2009 Restated EPS doesnt necessarily mean that calculation of weighted average no. of shares has been changed. Restated EPS normally occurs because of restatement of profit for the respective year, which accordingly changes the EPS.

The calculation of weighted average no. of shares should be calculated as (15000*10)+(5000*2)/12.

Akash Deep

Akash Deep (Querist)

10 June 2009

Akash Deep

Akash Deep (Querist)

10 June 2009 ok, agreed.

again in similar case

if the shares issued were converible preference shares instead of equity.
what will be the no of equity shares for diluted EPS.?

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)

10 June 2009 In this case the Profit includes Preferred dividends that would have been paid on Preference shares and the calculation for Weighted Av. No. of shares will remain same.
Distributable Profit will increase and no. of shares will remain same.

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