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

Zenith Components Ltd, a listed company, prepares both consolidated and separate financial statements under Ind AS. Its CFO proposes to present, in the separate financial statements, an additional EPS figure computed from the consolidated profit attributable to owners. Which statement is correct under Ind AS 33 as modified from IAS 33?

The proposal is not permitted. Ind AS 33 was modified from IAS 33 to clarify that an entity must not present, in its separate financial statements, earnings per share based on consolidated information, in addition to the existing bar on showing separate-statement EPS in consolidated statements.

  1. AIt is permitted if it is clearly labelled as supplementary information
  2. BIt is permitted only if the consolidated EPS is also shown in the separate statements in a note
  3. CIt is not permitted; separate financial statements shall not present EPS based on the consolidated informationCorrect
  4. DIt is required, because the parent's shareholders are the same in both sets of statements

Explanation

Ind AS 33 paragraph 4 was modified to state that an entity shall not present in separate financial statements EPS based on information given in consolidated financial statements. IAS 33 only barred the reverse. Hence the proposal, even with labelling, is not allowed.

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