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

Sunrise Textiles Ltd, a listed company, prepares both separate and consolidated financial statements under Ind AS. Its finance head proposes to show, in the separate financial statements, an additional EPS figure computed from consolidated profit attributable to owners. Under Ind AS 33, as modified from IAS 33, what is the correct position?

Ind AS 33 does not allow EPS based on consolidated information to be presented in separate financial statements. The Indian standard expressly extends the IAS 33 prohibition, which only barred separate-based EPS in consolidated statements, so the supplementary-presentation idea is not permitted.

  1. APermitted, provided it is shown as supplementary information below the main EPS
  2. BPermitted only if the consolidated EPS is also shown in the same statement
  3. CNot permitted; EPS based on consolidated information shall not be presented in the separate financial statementsCorrect
  4. DRequired, because separate statements must always reflect group performance

Explanation

Ind AS 33 paragraph 4 was modified to clarify that an entity shall not present, in its separate financial statements, EPS based on information given in the consolidated financial statements. IAS 33 only barred the reverse. The supplementary-presentation option is therefore wrong.

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