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CMA Intermediate · Corporate Accounting and Auditing · Earnings per Share (Ind AS 33)

A listed company prepares both consolidated and separate financial statements under Ind AS. Which statement about presenting earnings per share (EPS) is correct as per the Ind AS 33 modification of paragraph 4?

Each set of statements presents only its own EPS. Ind AS 33 paragraph 4 bars EPS based on consolidated information in the separate financial statements, and EPS based on separate information in the consolidated financial statements, so cross-presentation on either basis is not permitted.

  1. AThe separate financial statements may present EPS based on the consolidated figures as additional information
  2. BThe consolidated financial statements may present EPS based on separate financial statements if the parent is listed
  3. CEPS based on consolidated information must not be presented in the separate financial statements, and EPS based on separate information must not be presented in the consolidated statementsCorrect
  4. DBoth sets of statements must present EPS on both bases to ensure comparability

Explanation

Ind AS 33 modified paragraph 4 to clarify that an entity shall not present in separate financial statements EPS based on the information given in consolidated financial statements. As in IAS 33, EPS based on separate financial statements shall not be presented in the consolidated statements. Options permitting cross-presentation are therefore wrong.

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