Arfin Nayier (Article Assistant) (29 Points)
02 October 2010
Regards.
Kindly explain the treatment(if any) of Reserves in the computation of Profits attributable to Equity shareholders (PAFESH)!
What about Statutory Reserves and Debenture Redemption Reserve ?
yash bhartiya
(final student)
(245 Points)
Replied 04 October 2010
this question can be answered once u look at the basics..
profit is calculated every year whereas the reserves standing in the balance sheet are accumulated..these two terms are not comparable my frnd..while calculating the pafesh of a particlur year(as eps is calculated every year) why would u do anythin wid reserves??
so obviously no treatment of reserves standin in the balance sheet..and as far as reserves created in the particular year is concerned it will not be deducted no matter whatever reserves because pafesh is before any appropriations and after pref div
CAclubindia
