39. Earnings per Share.pdf - 39 U S L BLUE NOTES CHAPTER...

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Theory of Accounts Practical Accounting 1 39 BLUE NOTES U S L CHAPTER The earnings per share figure is the amount attributable to every ordinary share outstanding during the period. Thus, the earnings per share information pertains only to ordinary shares. It is not necessary for preference share because there is a definite rate of return for such share. Two Presentations of EPS 1) Basic earnings per share 2) Diluted earnings per share Public entities are required to present earnings per share. An entity shall present basic and diluted earnings per share on the face of the income statement with equal prominence for all periods presented. When an entity presents both consolidated financial statements and separate financial statements, the disclosures required by the standard need be presented only on the basis of the consolidated information. An entity that chooses to disclose EPS on its separate financial statements shall present such EPS information only on the face of its separate income statement. An entity shall not present such EPS information on the consolidated

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