Page 2 - 21. COMPILER QB - INDAS 33

INDAS 33 –

EARNINGS PER SHARE

(TOTAL NO. OF QUESTIONS – 13)

INDEX

S.No. Particulars Page No.
1 RTP Questions 21.1

2 MTP Questions 21.7
3 Past Exam Questions 21.13

RTPs QUESTIONS

Q1. (MAY 18)

P Ltd. is a subsidiary company of ABC Ltd. It prepares both Separate financial statements (SFS) and
consolidated financial statements (CFS) for the year ending on 31st March, 20XI. It has net profit after tax

of Rs 20,00,000 as per SFS & Rs 16,00,000 as per CFS. Share capital of P Ltd. is 2,00,000 shares of Rs 10
each. ABC Ltd. has acquired 80% shares of P Ltd. Accountant of P Ltd. had calculated following Basic EPS

for its SFS:
Calculation of Basic EPS in its SFS

Net Profit after tax Rs 16,00,000
Number of Equity shares attributable to Parent company ABC 1,60,000 shares
Ltd. (2,00,000 x 80%)

Basic EPS Rs 10 per share
Examine the correctness of the above presentation of Basic EPS.

SOLUTION

(i) As per Ind AS 33 “Earnings per Share”, when an entity presents both consolidated financial statements
(cfs) and separate financial statements (sfs) prepared in accordance with Ind AS 110, Consolidated Financial

Statements, and Ind AS 27, Separate Financial Statements, respectively, the disclosures required by this
Standard shall be presented both in the cfs and sfs. In cfs, such disclosures shall be based on consolidated

information and in sfs such disclosures shall be based on information given in separate financial statements.

(ii) An entity shall not present EPS based on the information given in separate financial statements in cfs
and vice versa.

21.1