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

Which of the following entities falls within the scope of Ind AS 33 as stated in the standard?

Ind AS 33 applies to companies that have issued ordinary shares and to which the Ind ASs notified under the Companies Act apply. Firms without ordinary shares, or companies with only debentures, are outside its scope.

  1. ACompanies that have issued ordinary shares to which Ind ASs notified under the Companies Act applyCorrect
  2. BEvery proprietorship firm that earns a profit during the year
  3. CPartnership firms that have admitted new partners during the year
  4. DCompanies that have issued only debentures and no ordinary shares

Explanation

The scope paragraph says the standard applies to companies that have issued ordinary shares to which Ind ASs notified under the Companies Act apply. Proprietorships and partnerships have no ordinary shares, and a company with only debentures has no ordinary shares.

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