30 November 2013
if company issues shares on 18 April 2013 for f.y 1.4.13 to 31.3.14 then for how many months such shares are calculated as outstanding shares in eps as per as 20?
30 November 2013
Although all illustration in AS 20 calculates outstanding shares by weighting of month Para 16 Provided that
The time-weighting factor is the number of days for which the specific shares are outstanding as a proportion of the total number of days in the period; a reasonable approximation of the weighted average is adequate in many circumstances.
From May to March 11 months
Fraction of April = (30-17)/30 = 0.43
Accordingly 11.43 months is the answer subject to "Period" is from 1 April 13 to 31 March 14.
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