Embedded Files
1. Basic EPS: Earnings
1-1 Introduction [O]
1-1 Introduction [O]
1-2 General Concept (Earnings) [I]
1-2 General Concept (Earnings) [I]
2. Basic EPS
2-1 Issue at Full Market Price [O]
2-1 Issue at Full Market Price [O]
2-2 Bonus Issue [O]
2-2 Bonus Issue [O]
2-3 Right Issue [I]
2-3 Right Issue [I]
2-4 Share Split [O]
2-4 Share Split [O]
2-5 Share Consolidation [O]
2-5 Share Consolidation [O]
2-6 Retrospective Adjustments [R]
2-6 Retrospective Adjustments [R]
3. Diluted EPS
3-1 Concepts [I]
3-1 Concepts [I]
3-2 Q&A Ben Limited (Dilution) [O]
3-2 Q&A Ben Limited (Dilution) [O]
3-3 Q&A Stokes Limited (Anti-dilution) [O]
3-3 Q&A Stokes Limited (Anti-dilution) [O]
3-4 Convertible Instruments [R]
3-4 Convertible Instruments [R]
Query: AOA. Sir ap ny concertible preference share pay tax rate q apply nae kiya ?
Response: WA. Preference dividend is not tax deductible (tax law does not consider it as an expense). There is no tax savings due to this payment and no change in tax even if it is not paid in future.
In comparison, interest is tax deductible (tax law considers it as an expense), this reduced tax profit and there is tax savings, if interest will not be paid when bonds will be converted this tax savings would not be available any more.
Query: Sir Gold limited question mai 30 shares ko kyu include kya hai 25 shares ko kyu nahi kya
Response: Because IAS 33 requires that we use maximum possible number of shares for maximum dilution of EPS. Therefore, 30 shares were considered as they are more than 25 shares.
3-5 Share Options or Warrants [R]
3-5 Share Options or Warrants [R]
3-6 Order of Dilution [I]
3-6 Order of Dilution [I]
Query: AOA. Sir ap ny concertible preference share pay tax rate q apply nae kiya ?
Response: WA
Preference dividend is not tax deductible (tax law does not consider it as an expense). There is no tax savings due to this payment and no change in tax even if it is not paid in future.
In comparison, interest is tax deductible (tax law considers it as an expense), this reduced tax profit and there is tax savings, if interest will not be paid when bonds will be converted this tax savings would not be available any more.
4. Other aspects
4-1 Presentation & Disclosure [I]
4-1 Presentation & Disclosure [I]
4-2 Q&A Abrar Limited (Disclosure) [I]
4-2 Q&A Abrar Limited (Disclosure) [I]
4-3 Usefulness & Limitations [O]
4-3 Usefulness & Limitations [O]
5. Comprehensive examples
5-1 Q&A Daffodil Limited (ICAP Spring 2018) [I]
5-1 Q&A Daffodil Limited (ICAP Spring 2018) [I]
Query: A.O.A sir 2016 main jo bonus fraction apply kia hai usay reverse nhe krna chahiyay tha?
Response: WA, Fraction is applied to number of shares (like in this question). Reverse fraction is applied to previously reported EPS (not number of shares).
5-2 Q&A Durable Electronics Limited [R]
5-2 Q&A Durable Electronics Limited [R]
5-3 Q&A Home Dynamics Limited (ICAP Spring 2017) [I]
5-3 Q&A Home Dynamics Limited (ICAP Spring 2017) [I]
Query: Sir isme tu authorization date ke bare mai kuch nahi kaha hai tu phir 1 Feb 20X7 wala bonus kiyo liya hai
Response: If we are still calculating EPS for year 20X6, it is quite logical to assume that financial statements have not been finalised and authorised for issue yet.
5-4 Q&A Chand Limited (ICAP Spring 2022) [I]
5-4 Q&A Chand Limited (ICAP Spring 2022) [I]
Query: why didn't we take Final Cash Dividend 2020 effect in 2021 Weighted Average? If you can please explain. Thanks! 😊
Response: Cash dividend does not change number of shares, bonus dividend increases number of shares.
5-5 Q&A AAZ Limited | (PQ) [I]
5-5 Q&A AAZ Limited | (PQ) [I]
5-6 Q&A Peach Tree Limited (ICAP Autumn 2022) [I]
5-6 Q&A Peach Tree Limited (ICAP Autumn 2022) [I]
Query: At this time 4:25 / 18:03 in theoretical ex right price formula how we use 100 shares how to find it
Response: 40% issue means 40 per 100. So for each existing 100 shares, 40 more shares have been issued.
5-7 Akkadian Limited (ICAP Spring 2023) [I]
5-7 Akkadian Limited (ICAP Spring 2023) [I]
5-8 Ray Limited (ICAP Autumn 2023) [R]
5-8 Ray Limited (ICAP Autumn 2023) [R]
5-9 ChatGPT Limited (ICAP Spring 2024) [R]
5-9 ChatGPT Limited (ICAP Spring 2024) [R]
6. Objective Based Q&A
6-1 MCQs 1 to 10 [O]
6-1 MCQs 1 to 10 [O]
6-2 MCQs 11 to 20 [O]
6-2 MCQs 11 to 20 [O]
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