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Diluted EPS

CA. Rashi Goyal (Chartered Accountant) (512 Points)

23 November 2009

Hi,

Incase of private limited company, the company is not required to disclose its EPS in its finanacial statements, but at the time of filing Form 23ACA the eps and diluted EPS is reqiored to be mandatorily provided.

Now my query is how to calculate diluted EPS if the company has accepted share application money during the year.

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CA Parveen Kumar (A.M. (Internal Audit Operations)) (40 Points)
Replied 23 November 2009

share application money received pending allotment of shares are not to be considered for calculation of Diluted EPS. And hence, no treatment of share application money received in working out the Diluted EPS. The formula for calculating Diluted EPS is = Adjusted Net Profit for the year/ Adjusted weighted no. of Equity share *Note* adjustement is required for potential equity shares...