Dear Final Students,
Hows the preparation on . As we start the Financial reporting and Financial management, we need to be conversant with few Standards and also go over the basic of Share capital - introduced since our XII th grade.
In my series of short forum blogs - i am happy to today discuss on EPS Accounting standard key concepts and approach to learning this standard.
Earning per share is an important disclosure as part of Financial statements which helps the users of the statements to understand the company's performance metrics. EPS as the acronym sounds easy but we need to be cognizant of various scenarios and disclosure requirements in this regard.
Before doing this standard, will recommend students to go over basics . Please go over the basics and we will discuss in the next posting about various methods of Calculating EPS and disclosure requirements.
Issue of Share capital - Stages, (Appl, Allotment, Calls - Calls in Arrears, Calls in Advance)
> For purpose of weighted average of shares - calculation of EPS - we have to consider the date only from Allotment of shares if the shares are issued for the first time in the company
Students - Please refer to Companies act, and answer all these questions
What is Bonus Share ? Treatment of Bonus share ( with reference to companies act). What reserves can be used for issue of bonus shares ?
What is Rights Share? Procedure for Rights Issue
Stock Split / Reverse Stock split. Why does company opt for Stock splits.
Buy Back of shares..As you woudl notice this year we have atleast 15 companies in India resorted to buy back of shares. YOu could refer to the artcile in the link below.
Reliance - share buyback -Jan 2012
Companies slow on share buy back plans - 2012
Preference Shares > participating preference shares, Convertible preference shares, Cummulative preference shares. Its important to understand the differences and basics.
Debentures > Redeemable , Convertible -- Treatment
> In case debentures are converted to Equity shares - then date of conversion of Debenture to equity is considered for Weighted average of shares.
What is ESOP'S ,
What is the date considered in Case of Amalgamation for purpose of WEighted average of shares computation?
> Purchase : Date of acquisition
> Merger : From the beginning of the reporting period
Regards,
Satish
Tejas Learning Centre
"Where Knowledge is shared"
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