EPS (AS-20)

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CS Asmita Mehta (Querist)
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07 April 2009 What will be the EPS in this case:

Earnings attributable to equity share holders : Rs.100000

Number of equity share o/s during the year : 1000

(face value Rs. 10 each)

Out of above equity share on 200 shares final call money @ Rs 2 is due but not received(calls in arrears)

Indirectly what i want to know that wheather shares on which calls are due but not received will be considered for EPS calculation or not ????????

Plz give ur answer in the light of AS-20 and maintion PERA NO. if possible.......

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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07 April 2009 The Bare AS says that :

"weighted average number of equity shares" is the number of equity shares outstanding at the beginning of the period, adjusted by the number of equity shares bought back
or issued during the period multiplied by the time-weighting factor"

and calls in arrears is nowhere falls into above conditions. So as per my understanding it may be included.

CS Asmita Mehta

CS Asmita Mehta (Querist)
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07 April 2009 so u wanna say that 200 shares will be included as it is and we need not to convert them in equivalent numbers........????????

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CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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08 April 2009 Nope. They needs to convert to equivalent number of shares on the basis of called up and paid up amount.

But its not gonna major difference in EPS as the CIA amount is usually very less.

CS Asmita Mehta

CS Asmita Mehta (Querist)
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08 April 2009 Thank you prakash sir......