Ind AS 33: Earnings Per Share#
Scope#
Applies to entities whose shares are:
- Listed on stock exchange
- In the process of listing
Types of EPS#
Basic EPS
Basic EPS = (Profit attributable to equity shareholders) / (Weighted average number of equity shares)
Diluted EPS
Diluted EPS = (Profit attributable to equity shareholders) / (Weighted average number of equity shares + dilutive potential equity shares)
Profit Attribution#
For Basic EPS
- Profit for the period
- Less: Non-controlling interest
- Less: Dividend on preference shares (if any)
- = Profit attributable to equity shareholders
For Diluted EPS
- Adjust profit for:
- After-tax effect of dilutive potential equity shares
- Dividends on dilutive potential equity shares
Weighted Average Number of Shares#
For new shares:
- From date of consideration receivable
- For bonus shares: from beginning of reporting period
- For share split: adjusted retrospectively
Dilutive Potential Equity Shares#
- Stock options and warrants
- Convertible preference shares
- Convertible debentures
- Employee share purchase plans
Anti-dilutive Items#
- Excluded from diluted EPS calculation
- When conversion would increase EPS or reduce loss per share
Disclosure Requirements#
- Basic and diluted EPS
- Profit used in calculation
- Weighted average number of shares
- Instruments that could dilute EPS in future
- Restatements of prior period EPS