HEELO FRIENDS
EARNING PER SHARE:-
IT HAS TWO TYPES
(A ) BASIC EARNING PER SHARE
(B) DILUTED EARNING PER SHARE
BASIC EARNING PERSHARE:-
(a) FORMULA:-
BEPS = EARNING ATTRIBUTABLE TO EQUITY SHAREHOLDER
WEIGHTED AVERAGE OF OUTSTANDING EQUITY SHAREHOLDER
HOW TO CALCULATE EARNING ATTRIBUTABLE TO EQUITY SHAREHOLDER:-
PBT = ...........................
(-) TAX EXPENSES = ............................
PAT = ...........................
(-) CUMMULATIVE PREF. DIVIDEND = ........................
(-) NON CUMMULATIVE PREF. DIVIDEND = ........................
(-) CDT = .....................
EARNING AVAILABLE TO EQUITY SHAREHOLDER= ..................
NOTES :-
(a) any type of reserve not to deduct from PAT because reserve are also partof profit which is available to equity shareholder after metting its requirmenT
(b) dividend on cummulative prefrence shre whether declared or not
(c) dividend on non cummulative prefrence share must declared only
(d) if question is silent regarding prefrence share then assumed it is cummulative prefrence share
HOW TO CALCULATE WEIGHTED AVERAGE OF OUTSTANDING EQUITY SHAREHOLDER:-
(a) OPENING BALANCE OF EQUITY SHARE = .....................................
(b)+ PUBLIC ISSUE ON TIME BASIS = ........................................
(c)+BONUS ISSUE ON FULL PERIOD BASIS = ..........................................
(d)+ PAID PART OF RIGHT ISSUE ON TIME BASIS
& BONUS PART ON FULL PERIOD BASIS =...................................................
TOTAL EQUITY SHARE = .............................................
NOTES:-
(a) share issued at a premium or discount is not relevant
(b) if share are issued on diferent face value or different classes then no. of shares are calculated on basis of amount.
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