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

Sagar Textiles Ltd, a listed company, has a subsidiary and prepares consolidated financial statements. It also prepares separate financial statements. The finance head proposes to show, in the separate financial statements, an additional EPS figure computed from the consolidated profit. As per Ind AS 33 as modified from IAS 33, what is the position?

The proposal is not permitted. Ind AS 33 paragraph 4 was modified to say that an entity shall not present, in its separate financial statements, earnings per share based on consolidated information, in addition to the rule against showing separate-statement EPS in consolidated statements.

  1. APermitted, provided the figure is shown as supplementary information
  2. BPermitted only if the subsidiary is wholly owned
  3. CNot permitted; separate financial statements must not present EPS based on consolidated informationCorrect
  4. DPermitted only with the approval of the audit committee

Explanation

Paragraph 4 of Ind AS 33 was modified to clarify that an entity shall not present, in its separate financial statements, EPS based on the information given in consolidated financial statements. IAS 33 only barred the reverse. Hence the proposal is not permitted, and supplementary presentation or wholly-owned status does not change this.

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