[Illustrative Checklist] Disclosure Requirements under Ind AS 33 | Earning Per Share

Ind AS 33, Earning per Share prescribes the principles for the determination and presentation of EPS, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. Even though EPS data have limitations because of the different accounting policies that may be used for determining earnings, a consistently determined denominator enhances financial reporting.

As per the requirement of this standard, an entity is required to follow the below-mentioned disclosure requirements:

I. Where the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalization, bonus issue or share split, or decreases as a result of a reverse share split, the calculation of basic and diluted EPS for all periods presented shall be adjusted retrospectively. If these changes occur after the reporting period but before the financial statements are approved for an issue, the per-share calculations for those and any prior period financial statements presented shall be based on the new number of shares. The fact that per-share calculations reflect such changes in the number of shares shall be disclosed. In addition, the basic and diluted EPS of all periods presented shall be adjusted for the effects of errors and adjustments resulting from changes in accounting policies accounted for retrospectively.

II. Check whether:

(a) The entity has disclosed the following its statement of profit and loss:

• • • 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.

(b) the entity has presented basic and diluted EPS with equal prominence for all periods presented.

Click Here To Read The Full Story