UNIT 4: LESSON 2 – CALCULATING

EARNINGS
 Basic EPS: General

• Formula = EPS (205 cents)

Earnings
• WANOS
WANOS = Weighted Average Number of Ordinary Shares
outstanding

Footnote 2
Earnings attributable to parent company
(Earnings) Par 4.1

PROFIT for period attributable to the owners

of the parent (not necessarily total
comprehensive income)

Less: non-redeemable preference

dividend provided or paid [WHY]

= EARNINGS
Footnote 3
 Preference shares

• Redeemable
• Debt
• Dividend = finance cost (SCI)
• Non – redeemable
• Equity
• Dividend - SoCE

Footnote 4
 Preference share dividends

• Preference share dividends can be

either:
• Cumulative
• Non-cumulative
• Difference between the two – VERY
NB!!!

Footnote 5
 Preference Share dividends
Preference shares can either be:

• Cumulative
• (Proposed, declared or paid)

• Non – cumulative
• Only if declared or paid

Footnote 6