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As 20

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kunjilal

Partner

21 Points Posted on 31 May 2012

What would be the treatment of Share warrants issued by the company for the computation of weighted No. of share outstanding during the year as on 31.03.2012, If:

1. Outstanding no. of share as on 01.04.2011 is 16,00,000 of Rs. 10 each

2.Cash received from Issue of share warrants Rs 1,20,00,000 on 1.07.2011

3.Conversion of share warrants to 12,00,000 equity shares of Rs. 10 each

4 outstanding no. of shares as on 31.03.2012 is 28,00,000 of Rs. 10 each

Replies (1)

CA Ganesh Agarwala

Audit Senior Manager

209 Points Posted on 01 June 2012

dear brother kunjilal,

i am sorry to say your question is incomplete as the date of conversion of the share warrents has not been given by you.

further let me discuss you problem in the light of AS 20:

as you know potentia; equity shares are also cosidered while calculating diluted earning per share of the company if the result in dilution of the basic earning per share. in the above case you need to calculate the weighted avg no of warrents held by waarent holders during the year and add it to the no of equity shares outstanding. then divide the earning by the above final figure resulting into diluted earning per share.

cheers

ganesh agarwala