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

Veda Industries Ltd. is listed and prepares both consolidated and separate financial statements under Ind AS. Its CFO proposes to show, in the separate financial statements, an additional EPS line computed from the consolidated profit attributable to owners. Which statement is consistent with Ind AS 33 as notified in India?

Ind AS 33 prohibits presenting, in separate financial statements, EPS computed from consolidated information. The Indian modification also prohibits showing EPS based on separate financial statements within the consolidated statements. So Veda's proposed additional line cannot be presented, even as supplementary information.

  1. AThe entity shall not present in its separate financial statements EPS based on the information given in the consolidated financial statementsCorrect
  2. BThe additional EPS line is permitted if it is labelled as supplementary information
  3. CThe additional EPS line is mandatory in separate statements when consolidated statements exist
  4. DThe additional EPS line is permitted only if the consolidated profit exceeds the separate profit

Explanation

Paragraph 4 of Ind AS 33 was modified to clarify that an entity shall not present, in separate financial statements, EPS based on the information given in consolidated financial statements. It also bars the reverse presentation in consolidated statements. Labelling it supplementary does not create an exception.

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