30 October 2012
If we do have share application money pending for allotment then what will be the impact on calculation of EPS.
According to AS -20: share application money pending for allotment or any advance share application money as at the balance sheet date,which is not statutorily required to be kept separately and is being utilized in the business of the enterprise, is treated in the same manner as dilutive potential equity shares.
Point no. 1) As at date we don't know the exact proportion of security premium & share capital. Point No. 2) as says which is not statutorily required to kept separately. means ?
30 October 2012
Share application money pending for allotment holds an impact on Diluted EPS calculation.For this you must have the information regarding no. of shares to be allotted. As you dont have the info regarding the security premium portion and share capital you must discuss it with the management and as per the tentative plans work out the no. of share by deciding the premium and capital portion.Give notes accordingly.
As for point 2 it signifies that there is no statutory requirement of keeping the share application money aside, it can be utilized in the business of the enterprise.
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