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

Kaveri Industries Ltd had 5,00,000 equity shares and a profit of Rs 20,00,000 for 2026-27 (EPS reported in the previous year's statements: Rs 3.60 on a profit of Rs 18,00,000). After the year-end but before the financial statements were approved, the company split each Rs 10 share into 2 shares of Rs 5. What basic EPS should be shown for 2026-27 and for the comparative year respectively?

EPS is Rs 2.00 for 2026-27 and Rs 1.80 for the comparative year. A share split occurring after the reporting period but before approval of the statements is applied to all periods presented, so both years use 10,00,000 shares.

  1. ARs 4.00 and Rs 3.60
  2. BRs 2.00 and Rs 1.80Correct
  3. CRs 2.00 and Rs 3.60
  4. DRs 4.00 and Rs 1.80

Explanation

Changes after the reporting period but before approval are reflected in per-share calculations for the current and all prior periods presented. Shares become 10,00,000. Current EPS = 20,00,000/10,00,000 = Rs 2.00. Prior EPS = 18,00,000/10,00,000 = Rs 1.80 (equivalently 3.60/2). Leaving the comparative unadjusted is wrong.

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