CAF-6 · Chapter 11 · Question 1 of 15
Under IAS 33, how is basic earnings per share (EPS) calculated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Profit attributable to ordinary equity holders of the parent divided by the weighted average number of ordinary shares outstanding.
Explanation
Basic EPS requires dividing the profit or loss attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period.
More IAS 33 Earnings per share MCQs
- Q3If an entity has multiple potential ordinary shares, in what order should they be considered when calculating diluted EPS?
- Q4A company issues a 1-for-4 bonus issue during the year. How should this be treated in the calculation of the weighted average number of…
- Q5Which of the following is considered a 'potential ordinary share'?
- Q6When calculating the weighted average number of shares, when are shares issued for cash generally included?
- Q7In a rights issue, the exercise price is often lower than the fair value of the shares. How does this affect the EPS calculation?