Page 112 - F2 Integrated Workbook STUDENT 2019
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Chapter 5
Basic EPS
1.2 Calculation of basic EPS
Earnings (profits attributable to ordinary shareholders)
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Weighted average number of ordinary shares
Earnings = PAT – NCI share of profits – irredeemable preference share dividends
Why are redeemable preference share dividends not removed from
earnings?
They should be treated as finance costs so are already incorporated
within PAT.
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