Skip to content

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

Himalaya Steels Ltd reports a profit from continuing operations of ₹80,00,000 and a loss from discontinued operations of ₹10,00,000. Weighted average equity shares are 20,00,000. In its statement of profit and loss, as required by Ind AS 1 read with Ind AS 33, which disclosure approach is correct? (The Ind AS 33 paragraphs on the separate income statement, such as 68A and 73A, are deleted.)

The company should show continuing EPS of ₹4.00 and total EPS of ₹3.50 in the statement of profit and loss, and disclose the discontinued-operations per-share amount of ₹(0.50) in the statement or the notes. The separate income statement option no longer exists under Ind AS.

  1. APresent the discontinued-operations EPS in a separate income statement, as the two-statement approach is optional
  2. BPresent basic EPS of ₹3.50 for total and give discontinued-operations EPS only in notes with no per-share figure
  3. CPresent only total EPS of ₹3.50 in the statement of profit and loss
  4. DPresent, in the statement of profit and loss, EPS from continuing operations ₹4.00 and total ₹3.50, with the discontinued-operations per-share amount (₹(0.50)) in the statement or the notesCorrect

Explanation

Ind AS has removed the separate income statement option, so paragraphs 4A, 67A, 68A and 73A are deleted but their numbering is retained. Total profit = 80,00,000 - 10,00,000 = 70,00,000, giving ₹3.50. Continuing EPS = 80,00,000/20,00,000 = ₹4.00 and discontinued = ₹(0.50). Per-share amounts for discontinued operations must still be disclosed in the statement or notes.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 33 Earnings per Share shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 33 Earnings per ShareFree diagnostic mock

More Ind AS 33 Earnings per Share questions