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CA Final · Financial Reporting · Ind AS 33 Earnings per Share

A student claims that Ind AS 33 itself contains the IAS 33 paragraph 2 scope test, under which the standard applies only to entities whose shares trade in a public market or which are filing for a public issue. What is the correct position?

The IAS 33 public-market scope test is deleted in Ind AS 33, because applicability and exemptions for Ind AS are governed by the Companies Act and the Rules made under it. Only the paragraph number is retained for consistency with IAS 33.

  1. AThe test is retained in Ind AS 33 exactly as in IAS 33
  2. BThe test is retained but applies only to consolidated financial statements
  3. CThe test is deleted from Ind AS 33 because applicability is governed by the Companies Act and the Rules made thereunderCorrect
  4. DThe test is replaced by a rule that all companies must present EPS

Explanation

Appendix 1 notes that the scope content of IAS 33 paragraph 2 has been deleted in Ind AS because applicability or exemptions of Ind AS are governed by the Companies Act and Rules. The paragraph number is kept for consistency. Hence the test is not part of Ind AS 33, and the standard does not state that all companies must present EPS.

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