Para 13 of As-20
This query is : Resolved
14 August 2010
cipating preference shares.In such situation,as per para 13 of As-20, the Company must reduce the same from PAT only for the purpose of compliace of As -20. Can you explain the same is compulsory or not to comply para 13 of As-20 for companies or not ? The decision will affect indinan corporate history
18 August 2010
Hi Snehal,
EPS is the earnings per share per unit of equity holding.
hence, you need to compulsory reduce the PAT by the amount payable as preference dividend (including dividend distribution tax) to arrive at the Profit attributable to equity share holders.
this is of course a compulsory as long as you have the preference share capital irrespective of whether dividend is declared or not for such preference shares.
Para - 13 is stating the dividend declared for cumulative preference shares in respect of the earlier years should not be deducted, as the same has been declared in the respective years as explained above.
hope this clarifies your concern.
EPS is the earnings per share per unit of equity holding.
hence, you need to compulsory reduce the PAT by the amount payable as preference dividend (including dividend distribution tax) to arrive at the Profit attributable to equity share holders.
this is of course a compulsory as long as you have the preference share capital irrespective of whether dividend is declared or not for such preference shares.
Para - 13 is stating the dividend declared for cumulative preference shares in respect of the earlier years should not be deducted, as the same has been declared in the respective years as explained above.
hope this clarifies your concern.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Non filing of I T Returns
- UDIN ISSUE
- Change Of Karta In Case of Death
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
