Page 147 - IC26 LIFE INSURANCE FINANCE

ACCOUNTING STANDARDS - 20

EARNING PER SHARE (REV. ’04)

Applicability:- Mandatory w.e.f. 1.04.2001 in respect of enterprises whose equity shares or

potential equity shares are listed on a recognized stock exchange in India.

An enterprise should present BASIC & DILUTED EPS on the face of the statement of profit and

loss account for each class of equity shares that has a different right to share in the net profit

for the period. EPS to be calculated & presented even in case of losses.

Basic EPS = Net profit/loss for the period attributable to equity shareholders

Weighted Average No. of Equity Shares

Diluted EPS = Adjusted Net profit/loss for the period attributable to equity shareholders.

Weighted Average No. of (Equity Shares + Dilutive Potential Equity Shares)

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