An entity must present basic and diluted EPS on the face of its statement of comprehensive income if its securities are publicly traded or in the process of a public issuance. Basic EPS is calculated by dividing profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated similar to basic EPS but adjusts both the earnings and number of shares for the effects of dilutive options and other potential ordinary shares. Both basic and diluted EPS must be presented even if the amounts are negative.
An entity must present basic and diluted EPS on the face of its statement of comprehensive income if its securities are publicly traded or in the process of a public issuance. Basic EPS is calculated by dividing profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated similar to basic EPS but adjusts both the earnings and number of shares for the effects of dilutive options and other potential ordinary shares. Both basic and diluted EPS must be presented even if the amounts are negative.
An entity must present basic and diluted EPS on the face of its statement of comprehensive income if its securities are publicly traded or in the process of a public issuance. Basic EPS is calculated by dividing profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated similar to basic EPS but adjusts both the earnings and number of shares for the effects of dilutive options and other potential ordinary shares. Both basic and diluted EPS must be presented even if the amounts are negative.
An entity must present basic and diluted EPS on the face of its statement of comprehensive income if its securities are publicly traded or in the process of a public issuance. Basic EPS is calculated by dividing profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated similar to basic EPS but adjusts both the earnings and number of shares for the effects of dilutive options and other potential ordinary shares. Both basic and diluted EPS must be presented even if the amounts are negative.
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Requirement to present EPS
An entity whose securities are publicly traded (or that is in process of public issuance) must present, on the face of the statement of comprehensive income, basic and diluted EPS for:
profit or loss from continuing operations attributable to the ordinary equity holders of the parent entity; and
profit or loss attributable to the ordinary equity holders of the parent entity for the period for each class of ordinary shares that has a different right to share in profit for the period.
If an entity presents the components of profit or loss in a separate income statement, it
presents EPS only in that separate statement.
Basic and diluted EPS must be presented with equal prominence for all periods presented.
Basic and diluted EPS must be presented even if the amounts are negative (that is, a loss per share).
If an entity reports a discontinued operation, basic and diluted amounts per share must be disclosed for the discontinued operation either on the face of the comprehensive income (or separate income statement if presented) or in the notes to the financial statements.
Basic EPS
Basic EPS is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
The earnings numerators (profit or loss from continuing operations and net profit or loss) used for the calculation should be after deducting all expenses including taxes, minority interests, and preference dividends.
The denominator (number of shares) is calculated by adjusting the shares in issue at the beginning of the period by the number of shares bought back or issued during the period, multiplied by a time-weighting factor. IAS 33 includes guidance on appropriate recognition dates for shares issued in various circumstances.
Contingently issuable shares are included in the basic EPS denominator when the contingency has been met. Diluted EPS
Diluted EPS is calculated by adjusting the earnings and number of shares for the effects of dilutive options and other dilutive potential ordinary shares. The effects of anti-dilutive potential ordinary shares are ignored in calculating diluted EPS.
Basic earnings per share (EPS)
An entity shall calculate basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the parent entity and, if presented, profit or loss from continuing operations attributable to those equity holders.
Basic earnings per share shall be calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
Formula Basic earnings
per share = (Profit or loss attributable to the ordinary equity holders of the parent entity) Weighted average number of ordinary shares outstanding (i.e. in issue) Shares
For the purpose of calculating basic earnings per share, the number of ordinary shares shall be the weighted average number of ordinary shares outstanding during the period.
The weighted average number of ordinary shares outstanding during the
period and for all periods presented shall be adjusted for events, other than the conversion of potential ordinary shares that have changed the number of ordinary shares outstanding without a corresponding change in resources.
