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

Himalaya Textiles Ltd, a listed company, prepares both consolidated and separate financial statements under Ind AS. The CFO proposes to show, in the separate financial statements, an additional line of EPS computed from the consolidated profit attributable to owners, for investor comparison. Which statement is correct under Ind AS 33 as notified?

The proposal is not permitted. Ind AS 33 clarifies that an entity must not present, in its separate financial statements, earnings per share based on information from the consolidated financial statements, and the reverse is also barred. Supplementary presentation or committee approval does not change this restriction.

  1. APermitted, provided it is shown as supplementary information below the main EPS
  2. BNot permitted; an entity shall not present in separate financial statements EPS based on information given in consolidated financial statementsCorrect
  3. CPermitted only if approved by the audit committee
  4. DPermitted only for diluted EPS and not for basic EPS

Explanation

Ind AS 33 paragraph 4 was modified to clarify that an entity shall not present in separate financial statements EPS based on consolidated financial statements information. The reverse restriction (separate-statement EPS in consolidated statements) also applies. Hence a supplementary line, whether basic or diluted, is not allowed.

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