Impact of bonus on EPS

AS 905 views 1 replies

Dear All,

Greetings to all.. CAclubindia has been a great platform for knowledge widening. Thanks for all posts.

Well for now my query is about impact of issue of bonus shares on the shares which were actually issued in lieu of debt instruments (i.e. other than cash) during the year. As per AS-20 EPS has to be restated for all the reported periods to include impact of bonus shares on the opening equity but in my practical case we had certain opening no. of equity shares and then converted a debt into equity shares during the year now my concern is whether to include the bonus shares on the shares converted during the year also needs to be included in the no. of shares used to calculate the EPS for the year.

 

Please post your views as i couldn't reach a conclusion on the same.

 

Thanks!!

Replies (1)

according to my knowledge of this particular AS, we will include d no of shares so converted while calculating EPS 4 d current year as well as 4 previous years coz no resource has been recd. by d entity so we have to restate d EPS 4 previous years also


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