Skip to content

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

Sagar Textiles Ltd has a subsidiary and prepares both separate and consolidated financial statements under Ind AS. The finance head proposes to show, in the separate financial statements, an additional EPS figure computed from the consolidated profit. Which statement is correct as per Ind AS 33?

Ind AS 33 prohibits presenting, in separate financial statements, EPS based on consolidated information. The Indian modification to paragraph 4 makes this explicit, so a supplementary label or board approval cannot permit it, and the ban applies to both basic and diluted EPS.

  1. AAllowed, provided it is clearly labelled as supplementary EPS
  2. BAllowed only if approved by the board of directors
  3. CNot allowed; separate financial statements must not present EPS based on consolidated informationCorrect
  4. DAllowed only for diluted EPS and not for basic EPS

Explanation

Ind AS 33 modifies paragraph 4 so that an entity must not present, in its separate financial statements, EPS based on the information in the consolidated financial statements. Labelling or board approval does not change this. The restriction is not limited to diluted EPS.

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