Diluted EPS

Whether Diluted EPS is to be disclosed for SMC?

Replies (8)

Yes, all companies requires... for the same find attached file being ASI 12 for applicability of AS 20...

I wanted to know whether Basic EPS & Diluted EPS- Both are to be disclosed.

Yes.., both has to be disclosed... even though both are same... It is general practice that I always see in many BSs.....

A partial exemption has been given to SMC that they are not required to disclose DEPS.

No,  Diluted EPS is not required to be disclosed by the SMC's & SME's, otherwise known as Level II & Level III Entities, respectively.


As per Accounting Standard 20, 'Earning Per Share', All Entities are required to shown on the face of P&L A/c :-

1. BEPS

2. DEPS

3. Reconciliation Statement, reconciling the two Ratios - BEPS & DEPS


But,  Partial Exemption is available to SMC's & SME's in that they do not need to disclose the DEPS, and therefore the Reconciliation Statement is also not needed. They only need to disclose the BEPS.


Note :- Remember, any of the Partial Exemptions, given in AS - 15/19/20/28/29 is not mandatory to avail. It is up to the Entities to decide whether they want to avail the Exemption or not.

May I know where the partial exemption is mentioned?

In the AS itself.

Do you mean "the Exact Paragraph Number" ?

I can't tell you now. But, it is there in Praveen Sharma Sir's Book. I'm more than sure. We have been taught this only.

Thank you for all.............

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