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How to Calculate EPS as per AS 20 ?

What is EPS ?

Earning Per Share is the Earning Attributable to Equity Shareholders to Company. Accounting Standard Board constituted by The Institute of Chartered Accountants of India, has issued the Accounting Standard which provides the methodology for calculating the Earning Per Share of the Company. 

Point to Remember

- Calculation of Earning

- Treatment of Extraordinary Income/Expenses

- Deduction of Interest on Debts

- Tax Treatment

- Dividend attributable to Preference Shares

- No. of Equity Shares Outstanding

- Weighted No. of Equity Shares Outstanding during the period

- Bonus Shares, Right Shares, Buy back of Shares Issued

- Partly paid Equity Shares issued or outstanding

- Issue of shares for Amalgamation in the nature of Purchase or in merger

- Potential Equity Shares

- Diluted Earning Per Share

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Earning Attributable to Equity Shareholders 

Weightage Number of Equity Share outstanding during the period

Question for Practice - H Limited has Rs. 50,00,000 (Face Value Rs. 10) Equity Shares and Rs. 20,00,000 Preference Share (Dividend 10%) and 30,00,000 Rs. Debentures Outstanding at the beginning of the year (01.04.2022) and Issued Rs. 25,00,000 Preference Shares, Rs. 25,00,000 Equity Shares and Debentures 8% Rs. 50,00,000 on 1st October, 2022.  Equity Share Party Paid Rs. 5 having Proportionate right for Dividend. S Limited is merge with H Limited and H Limited Issues Rs. 30,00,000 Equity Shares @ 15 each having face value of Rs. 10. H Limited earned 2 Crore Profit during the year having 30% Income tax applicability. Calculate Earning Per share for year ending as on 31.03.2023.

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