Earning per share

1410 views 4 replies

Loss before tax: (20000)

 

Current tax : Nil

 

Deferred tax Liability : (85452)

 

Loss after tax : 65452

 

No. Of Share : 10000

 

What is the amount of EPS??

While calculating EPS Whether we have to consider deferred tax provision or not???

Replies (4)

I think deferred Tax liability has to be considered while calculating the EPS..

Calculate the net Profit/loss for the period including prior period terms and extraordinary item & deduct tax Liability (Current + Deferred)

 

I hope I'm Right...

I think extraordinary item should not be considered while calculation.

Hi Dear,

Every thing should be consider while calculating EPS

if there is any extra ordianry item than all EPS will be calculated twice

one time without considering the extra ordinary item

second time after considering extra ordinary item.

Deferred tax liability is not an extra ordianry item.

Hope u got the clearification.

Yes sir i agree with your answer. In our case there is a loss from operating activities and then after providing deferred tax adjustments the company goes into profit. And EPS is calculated from that profit. So my argument is whether this treatment amounted to false presentation or not.....???

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