AS 20 – Earnings Per Share (EPS) ✍️ Remember the basic EPS formula… — Darshan Makwana — TG.ME

📊 AS 20 – Earnings Per Share (EPS) ✍️ Remember the basic EPS formula: Basic EPS = Profit attributable to Equity Shareholders ÷ Weighted Average Number of Equity Shares 💡 Exam Trick (Very Important ⚡) In the exam, don’t overcomplicate EPS. Just follow these steps: 👉 Step 1: Calculate Profit attributable to Equity Shareholders 👉 Step 2: Adjust profit for Preference Dividend 👉 Step 3: Calculate Weighted Average Number of Equity Shares 👉 Step 4: Apply the EPS Formula 👉 Step 5: For Diluted EPS, consider potential equity shares that are dilutive 🧠 Golden Line (for MCQs + Theory): “EPS = Profit available to Equity Shareholders ÷ Weighted Average Equity Shares.” ⚡ Remember: • Preference Dividend → Reduce from Profit • Bonus Issue / Rights Issue → Adjust Shares retrospectively • Part-year Issue → Take time-weighted shares 🎯 Pro Tip: First calculate the numerator (Profit), then calculate the denominator (Weighted Average Shares), and finally divide. This makes EPS questions much easier and avoids calculation mistakes.