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

Which statement best reflects the objective of basic earnings per share information under Ind AS 33?

The objective is to measure the interest of each ordinary share of the parent entity in the entity's performance over the reporting period. It is a performance measure, not a measure of market price, dividend or net assets per share.

  1. ATo measure the market value of each ordinary share of the parent
  2. BTo measure the interest of each ordinary share of the parent entity in the entity's performance over the reporting periodCorrect
  3. CTo measure the dividend payable on each ordinary share
  4. DTo measure the net assets backing each ordinary share

Explanation

Paragraph 11 states the objective of basic EPS is to provide a measure of the interests of each ordinary share of a parent entity in the performance of the entity over the reporting period. It is a performance measure, not a market value, dividend or net asset measure.

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