Earning per share

HEELO FRIENDS

EARNING PER SHARE:-

IT HAS TWO TYPES

(A ) BASIC EARNING PER SHARE

(B) DILUTED EARNING PER SHARE

BASIC EARNING PERSHARE:-

(a) FORMULA:- 

BEPS    =  EARNING ATTRIBUTABLE TO EQUITY SHAREHOLDER

                  WEIGHTED AVERAGE OF OUTSTANDING EQUITY SHAREHOLDER

HOW TO CALCULATE  EARNING ATTRIBUTABLE TO EQUITY SHAREHOLDER:-

       PBT                                                                      =   ...........................

(-) TAX EXPENSES                                                  =   ............................

   PAT                                                                        =   ...........................

(-) CUMMULATIVE PREF. DIVIDEND                    =  ........................

(-) NON CUMMULATIVE PREF. DIVIDEND          =  ........................

(-) CDT                                                                   =    .....................

EARNING AVAILABLE TO EQUITY SHAREHOLDER= ..................

NOTES :-

(a) any type of reserve not to deduct from PAT because reserve are also partof profit  which  is available to equity shareholder after metting its requirmenT

(b) dividend on cummulative prefrence shre whether declared or not

(c) dividend on non cummulative prefrence share must declared only

(d) if question is silent regarding prefrence share then assumed it is cummulative prefrence share

HOW TO CALCULATE  WEIGHTED AVERAGE OF OUTSTANDING EQUITY SHAREHOLDER:-

(a) OPENING BALANCE OF EQUITY SHARE                                                      =   .....................................

(b)+ PUBLIC ISSUE ON TIME BASIS                                                                  =   ........................................

(c)+BONUS ISSUE ON FULL PERIOD BASIS                                                    =   ..........................................

(d)+ PAID PART OF RIGHT ISSUE ON TIME BASIS 

& BONUS PART ON FULL PERIOD BASIS                                                        =...................................................

TOTAL EQUITY SHARE                                                                                        = .............................................

NOTES:-

(a) share issued at a premium or discount is not relevant

(b) if share are issued on diferent face value or different classes then no. of shares are calculated on basis of amount.