A fiscal year (or financial year, or sometimes budget year) is a period used for calculating

annual ("yearly") financial statements in businesses and other organizations. In many

jurisdictions, regulatory laws regarding accounting and taxation require such reports once per
twelve months, but do not require that the period reported on constitutes a calendar year (i.e.,
January through December). Fiscal years vary between businesses and countries. Fiscal year
may also refer to the year used for income tax reporting.

In addition, many companies find that it is convenient for purposes of comparison and for
accurate stock taking to always end their fiscal year on the same day of the week, where local
legislation permits. Thus some fiscal years will have 52 weeks and others 53. Major
corporations that adopt this approach include Cisco Systems[1] and Tesco.[citation needed]

Annual general meeting

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An annual general meeting (commonly abbreviated as AGM, also known as the annual
meeting) is a meeting that official bodies, and associations involving the public (including
companies with shareholders), are often required by law (or the constitution, charter, by-laws
etc. governing the body) to hold. An AGM is held every year to elect the Board of Directors
and inform their members of previous and future activities. It is an opportunity for the
shareholders and partners to receive copies of the company's accounts as well as reviewing
fiscal information for the past year and asking any questions regarding the directions the
business will take in the future.

C
Normally, a comapny is liable to pay tax on the income computed in accordance with the
provisions of the income tax Act, but the profit and loss account of the company is prepared
as per provisions of the Companies Act. There were large number of companies who had
book profits as per their profit and loss account but were not paying any tax because income
computed as per provisions of the income tax act was either nil or negative or insignificant.
In such case, although the companies were showing book profits and declaring dividends to
the shareholders, they were not paying any income tax. These companies are popularly
known as Zero Tax companies. Inorder to bring such companies under the income tax act net,
section 115JA was introduced w.e.f assessment year 1997-98.

According to this section, if the taxable income of a company computed under this Act, in
respect of previous year 1996-97 and onwards is less than 30 % of its book profits, the total
income of such company is chargeable to tax for the relevant previous year shall be deemed
to an amount equal to 30 % of such book profits.

A new tax credit scheme is introduced by which MAT paid can be carried forward for set-off
against regular tax payable during the subsequent five year period subject to certain
conditions, as under:-

 When a company pays tax under MAT, the tax credit earned by it shall be an amount
which is the difference between the amount payable under MAT and the regular tax.
 Tegular tax in this case means the tax payable on the basis of normal computation of
total income of the company.
 MAT credit will be allowed carry forward facility for a period of five assessment
years immediately succeeding the assessment year in which MAT is paid. Unabsorbed
MAT credit will be allowed to be accumulated subject to the five year carry forward
limit.
 In the assessment year when regular tax becomes payable, the difference between the
regular tax and the tax computed under MAT for that year will be set off against the
MAT credit available.
 The credit allowed will not bear any interest.

Diluted Earnings Per Share (diluted EPS) is a company's earnings per share (EPS)
calculated using fully diluted shares outstanding (i.e. including the impact of stock option
grants and convertible bonds). Diluted EPS indicates a "worst case" scenario, one in which
everyone who could have received stock without purchasing it directly for the full market
value did so.[1]

To find diluted EPS, basic EPS is calculated for each of the categories on the income
statement first. Then each of the dilutive securities are ranked based on their effects, from
most dilutive to least dilutive and antidilutive. Then the basic EPS number is diluted one by
one by applying each one, skipping any instruments that have an antidilutive effect.[2]

Contents
[hide]

 1 Calculations
 2 International financial reporting standards
 3 See also
 4 References

[edit] Calculations
Calculations of diluted EPS vary. Morningstar reports diluted EPS "Earnings/Share $", which
is net income minus preferred stock dividends divided by the weighted average of common
stock shares outstanding over the past year; this is adjusted for dilutive shares.[3][4] Some data
sources may simplify this calculation by using the number of shares outstanding at the end of
a reporting period.[5]

[edit]

Earnings per share

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Accountancy

Key concepts
Accountant · Bookkeeping · Cash and accrual basis ·
Constant Item Purchasing Power Accounting · Cost of goods
sold · Debits and credits · Double-entry system · Fair value
accounting · FIFO & LIFO · GAAP / International Financial
Reporting Standards · General ledger · Historical cost ·
Matching principle · Revenue recognition · Trial balance
Fields of accounting
Cost · Financial · Forensic · Fund · Management · Tax
Financial statements
Balance sheet · Statement of cash flows · Statement of
changes in equity · Statement of comprehensive income ·
Notes · MD&A
Auditing
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audit · Sarbanes–Oxley Act
Professional Accountants
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Earnings per share (EPS) are the earnings returned on the initial investment amount.

In the United States, the Financial Accounting Standards Board (FASB) requires companies'
income statements to report EPS for each of the major categories of the income statement:
continuing operations, discontinued operations, extraordinary items, and net income.

[edit] Calculating EPS

The EPS formula does not include preferred dividends for categories outside of continued
operations and net income. Earnings per share for continuing operations and net income are
more complicated in that any preferred dividends are removed from net income before
calculating EPS. Remember that preferred stock rights have precedence over common stock.
If preferred dividends total $100,000, then that is money not available to distribute to each
share of common stock.

Earnings Per Share (Basic Formula)

 Earnings Per Share (Net Income Formula)

Earnings Per Share (Continuing Operations Formula)

Only preferred dividends actually declared in the current year are subtracted. The exception is
when preferred shares are cumulative, in which case annual dividends are deducted
regardless of whether they have been declared or not. Dividends in arrears are not relevant
when calculating EPS.

[edit] See also



 Dear Students,

Try out this problem on EPS.

1.Net Profit for the CY - Rs.1,00,00,000

2.No of equity shares os - Rs.50,00,000

3.No of 12% convertible

debentures of Rs.100each

Each debenture is convertible

into 10 equity shares - 1,00,000

4.Interest expense for the CY - ?

5.Tax relating to Interet exp(30%) - ?

6.Adjusted net profit for the CY - ?

7.NO of equity shares resulting from

conversion of debentures - 10,00,000

8.No of equity shares used to compute

diluted EPS - ?

9.Diluted EPS - ?

FOB (shipping)
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For other uses, see FOB (disambiguation).

FOB is an initialism which pertains to the shipping of goods. Depending on specific usage, it
may stand for Free On Board or Freight On Board, with similar but distinct implications.
FOB specifies which party (buyer or seller) pays for which shipment and loading costs,
and/or where responsibility for the goods is transferred. The last distinction is important for
determining liability for goods lost or damaged in transit from the seller to the buyer.

Free on board means that the seller delivers when the goods pass the ship's rail at the named
port of shipment. This means that the buyer has to bear all costs and risks of loss of or
damage to the goods from that point. The FOB term requires the seller to clear the goods for
export. Buyer is responsible for all the costs incurred after the cargo has been LOADED on
board.

The meaning and usage of "FOB" can vary significantly. International shipments typically
use "FOB" as defined by the Incoterm standards. Domestic shipments within the US or
Canada often use a different meaning, specific to North America, which is inconsistent with
the Incoterm standards.

The concept of Minimum Alternate Tax (MAT) was

introduced in the direct tax system to make sure that
companies having large profits and declaring substantial
dividends to shareholders but who were not contributing
to the Govt by way of corporate tax, by taking advantage
of the various incentives and exemptions provided in the
Income-tax Act, pay a fixed percentage of book profit as
minimum alternate tax.

Each debenture is convertible into 10 equity shares - 1,00,000

                                                            =100,000 x 10=10,00,000

4.Interest expense for the CY= 10,00,000 x 12/100= 1,20,000

5.Tax relating to Interet exp(30%)=1,20,000 x 30/100= 36,000

6.Adjusted net profit for the CY = 1,00,00,000(Net Profit for the CY) - (1,20,000+36000)=
98,44,000

8.No of equity shares used to compute diluted EPS= 50,00,000+10,00,000= 60,00,000

9.Diluted EPS= net profit/no. of shares= 9,84,4000/60,00,000=1.64

Regards,

Amrita Chandran,FK-2057