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

Ind AS 33 adds a paragraph after paragraph 12 dealing with items of income or expense otherwise required to be recognised in profit or loss but debited or credited to securities premium account or other reserves. For basic EPS, how are such amounts treated?

The amount is deducted from profit or loss from continuing operations in calculating basic EPS. Ind AS 33 includes this added paragraph so that items that should have been recognised in profit or loss, but were taken to securities premium or other reserves, still affect the earnings numerator.

1. AIgnored, since they bypass profit or loss
2. BAdded to profit or loss from continuing operations
3. CDeducted from profit or loss from continuing operationsCorrect
4. DAdjusted only in the weighted average number of shares