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Earning per share

(Guest)

CAN DILUTED EARNING PER SHARE > BASIC EARNING PER SHARE.

Please quote some examples also.

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3 Replies

M. N. JHA (CA) (8316 Points)
Replied 02 July 2012

Not in all situation. . . . DEPS may be more, less and equal to BEPS.

(Guest)

Sir please explain this with some examples & thanks for the reply.

M. N. JHA (CA) (8316 Points)
Replied 06 July 2012

Actually diluted eps may be greater, equal or less then beps. BUT AS PER ACCOUNTING STANDARD-20,Only those things should be dilute by which DEPS will least i.e. DEPS always be less then BEPS. For example compny had issued 1000 share warant of rs. 100 each and due to this one lacs rs. Company earning is up whenever we not paid any thing for it or paid less then earning from these capital in that case we dilute company earning and DEPS will come lower then BEPS.