Accounting standards 20
Mukul Bansal (Student) (29 Points)
25 April 2015Mukul Bansal (Student) (29 Points)
25 April 2015
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 25 April 2015
According to AS 20, "For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period should be adjusted for the effects of all dilutive potential equity shares."
In simple terms, Diluted EPS takes one step further to Basic EPS. Basic EPS takes into account only the outstanding shares at that period of time. Whereas, Diluted EPS estimates how many shares could theoretically exist after all the Share warrents, Convertibles Bonds, Convertible Debentures, Warrants etc have been exercised.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"