IAS 33 – BASIC EARNING PER SHARE

Profit for the year

Less: Dividend on Cumulative I.P.S (declared or not)
Less: Dividend on Non-cumulative I.P.S (only if declared)
Less: NCI % of Dividend
Less: Participatory Pref. Dividends

DIVIDENDS
- Not time apportioned. Paid on balance outstanding i.e., number of shares as on announcement date or on book closure date, if
specified.
- Bonus/F. Issue if on the same date of Dividends: Ignore them for calculating Dividend because it is assumed that the BC date was prior to
issuing Bonus/F. Issue
- Dividends paid to ordinary shareholders are not subtracted from the P.A.T for B.EPS working
- Final dividend for the year are paid in the next year and accordingly considered in the SoCIE

Irredeemable Preference Share: Cumulative Deducted whether declared or not.

(capital/equity) Calculated on closing balance and are not time apportioned
Non-Cumulative Deducted only when declared or not
Calculated on closing balance and are not time apportioned
Redeemable Preference Share Cumulative Not deducted
(financial liability) Non-Cumulative They don’t exist

1. BONUS/SCRIP/CAP ISSUE/SPLIT/CONSOLIDATION
- For WANN, consider, even if issued mid-year, from the date of entitlement as if Bonus shares were always in issue
Adjustment Factor: Number of shares after issue
Number of shares before issue
- Apply to all share outstanding in the year prior to issue of bonus shares

ADJUST PRIOR YEARS EPS BY:

Option1: Divide PY’s EPS with AF
Option 2: Multiply PY’s EPS with AF inversely
Option 3: Multiply PY’s WANS with AF

2. RIGHT SHARES
- For WANN, consider from the date of entitlement/subscription
- Bonus share, if entitled, are considered for right shares, otherwise announcement date alone doesn’t matter if they are not
entitled/approved
- Rights shares are also allotted to Bonus shares approved prior to Rights even if Bonus are paid after the Rights
- Bonus/Right shares issued after the year end but before FSs are authorized for issue, BEPS is calculated normally without taking in the
impact of it, however, it will be considered for comparative purpose

Adjustment Factor: Fair value per share immediately before the exercise of rights / (cum-right) price
Theoretical ex-rights fair value per share
TERP: (Shares before right issue x cum-rights price) + (Right issue shares x Exercise price)
Shares before right issue + Right issue shares

Shares in issue before Rights (4) Avg market price Total Amount
Right shares issued (1) Exercise price Total Amount
Total No. of shares (A) TERP = B / A Total Amount (B)

 DISCONTINUED OPERATIONS:
- Pref. Divs are subtracted from the Con. Ops only.
- Remove P/L from C. ops if already included
- EPS on D.C.O aren’t presented on the face of SoCI

 PARTICIPATORY PREF. SHARES:

 DILUTED EARNING PER SHARE
1. CONVERTIBLE DEBENTURES/BONDS/LOAN NOTES: Consider fro WANN even if converted, however, do NOT consider if converted on
the first day of the year

2. CONVETIBLE PREFERENCE SHARES:

Cumulative I.P.S Add back dividend without tax impact Additions as done for Convertible
because it is already taxed in P/L (whether Debentures
declared or not)

Non-Cumulative I.P.S Add back dividend without tax impact Additions as done for Convertible
because it is already taxed in P/L (only If Debentures
declared)

Cumulative P.S Add back dividend/Interest expense less Additions as done for Convertible
tax impact. (declaration or not, doesn’t Debentures
matter)
Non-Cumulative I.P.S Add back dividend/Interest expense less Additions as done for Convertible
tax impact. (declaration or not, doesn’t Debentures
matter)

3. SHARE OPTIONS
Considered only if In-the-Money, i.e., exercise price is below average market price