Events After Reporting Period (IAS 10)

Events after Reporting Period Events that occurs after the end of reporting period but before the authorization of financial statements are called events after reporting period. These events may or may not in in the favor of an entity. [embed]https://youtu.be/jr_OFMNl1c0[/embed] [embed]https://youtu.be/MgH-JL5v_nU[/embed] Type of Events There are two types of events: 1) Adjusting events after reporting period: There are circumstances that give evidence of condition that existed at the reporting period. 2) Non-adjusting events after reporting period: There are circumstances that give indication of conditions that arose after reporting period. Reporting Periods Reporting periods are quarter end, half year end and financial year end dates. Financial Statement Authorization Date An entity issues...

20 January 2021

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Earnings per Share (EPS) – IAS 33

Posted by Ali Murtaza

in Accounting, All Articles

Introduction Earnings per Share (EPS) is an important concept of accounting. In this article we are covering below topics of EPS; Basic concept and formula of EPS Preference Shares treatment Issue of new shares Bonus Issue Basic Concept and formula of earnings per share The rules for calculating Earnings per Share are defined in IAS 33. It is very easy concept. The profit is adjusted with few items is divided by weighted average number of shares in the particular period. Which Earnings shall be taken? Earnings is the profit after deducting taxation (PAT). Preference Shares: EPS is a measure of earnings per ordinary shares. Company has Preference Shares These shares...

15 January 2021

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Diluted Earnings per Share (EPS) – IAS 33

Posted by Ali Murtaza

in Accounting, All Articles

Introduction Diluted earnings per Share (EPS) is an important concept of accounting. In this article we are covering below topics of diluted EPS; Meaning of Dilution Convertible shares and convertible bonds Options and Warrants Employee share options Basic Concept of Diluted EPS Dilution means reduction in strength. A company issues convertible shares / bonds, options and warrants which increases the share capital of the company and reduces earning per share hence dilution. Diluted EPS is calculated by adjusting earnings of the company and also its number of shares. Earnings are adjusted because interest or dividend shall no longer be paid upon conversion of shares...