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

According to Ind AS 33, the objective of basic earnings per share information is to provide a measure of:

Basic EPS measures the interests of each ordinary share of a parent entity in the entity's performance over the reporting period. It is a performance measure, not market value, dividend per share or net asset value per share.

  1. Athe market value of each ordinary share at the reporting date
  2. Bthe interests of each ordinary share of a parent entity in the performance of the entity over the reporting periodCorrect
  3. Cthe dividend payable on each ordinary share for the period
  4. Dthe net assets attributable to each ordinary share at the end of the period

Explanation

The standard states that basic EPS gives a measure of the interests of each ordinary share of the parent entity in the entity's performance over the reporting period. Market value, dividends and net assets per share are not what basic EPS measures; it is a performance measure over a period.

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