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

According to Ind AS 33, basic earnings per share is calculated by dividing which amount by the weighted average number of ordinary shares outstanding during the period?

Basic EPS is computed by dividing profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period, as stated in paragraph 10 of Ind AS 33.

  1. AProfit or loss attributable to ordinary equity holders of the parent entityCorrect
  2. BTotal comprehensive income of the group including non-controlling interest
  3. CProfit before tax of the parent entity
  4. DDividend declared on ordinary shares

Explanation

Paragraph 10 of Ind AS 33 states that the numerator is profit or loss attributable to ordinary equity holders of the parent entity. Profit before tax or dividends are not the prescribed numerator, and the numerator is not total comprehensive income including non-controlling interest.

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