W6 - investors' interpretation of financial statements Flashcards
1
Q
How do you compute EPS?
A
Profit attributable to equity shareholders (PAT)/No of equity shares
Preference dividend deducted from PAT
2
Q
What is excluded from PAT?
A
OCI,
If discontinued operation, PAT from continued operation will be calculated as well
3
Q
How do you compute EPS when there’s a new number of shares in issue?
A
If new shares are issues during the year the weighted average number of shares must be calculated
4
Q
How do you compute EPS when there’s a bonus issue?
A
No. of shares treats bonus issue as if it had occurred at beginning of year
