Skip to content

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

Which statement about the objective of basic earnings per share under Ind AS 33 is correct?

The objective of basic EPS is to give a measure of the interests of each ordinary share of the parent entity in the entity's performance over the reporting period, rather than dividends, market price or net assets per share.

  1. AIt measures the cash dividend paid per ordinary share during the year
  2. BIt provides a measure of the interests of each ordinary share of a parent entity in the performance of the entity over the reporting periodCorrect
  3. CIt measures the market price of each ordinary share at the reporting date
  4. DIt measures the net assets backing each ordinary share at the reporting date

Explanation

Paragraph 11 states the objective is to provide a measure of the interests of each ordinary share of a parent entity in the entity's performance over the reporting period. Dividends, market price and net assets per share are different measures.

Did you get it right without looking?

One question tells you little. A timed set on Earnings per Share (Ind AS 33) shows your real accuracy, how long you take and where you lose marks.

Practise Earnings per Share (Ind AS 33)Free diagnostic mock

More Earnings per Share (Ind AS 33) questions