Page 101 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Earnings per share

Earnings per share

1.1 Objective of earnings per share (EPS)

 EPS is an analysis tool used to assess a company’s
performance.

 It is utilised by potential users of the financial statements in its
own right and is part of the P/E ratio.

 PLC’s must disclose basic and diluted EPS.

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