When you're looking at EPS you'll also come across a ratio called the price-earnings ratio.
What is the Price-Earnings Ratio?
The price-earnings ratio is is an important stock market ratio, which compares the current market price...
Definitions of Rights issues, Options and Warrants
A rights issue is where a company offers existing shareholders a chance to buy new shares in the company at below market rates at a future date.
In this article, we're going to take a look at the presentation for Earnings per Share under IAS 33.
The basic EPS and diluted EPS from continuing operations should be presented in the statement of...
A bonus issue of shares (also known as a scrip issue or a capitalisation issue) is an issue of new shares to existing shareholders, in proportion to their existing shareholding, for no cost or...
Why do we need to know how to calculate Earnings per Share?
Investors love to use the earnings per share calculation when assessing a company's performance. Why?
Because it's a quick and easy way to get...
IAS 33 allows companies to present an alternative measure of EPS (Earnings per Share) in addition to the standard basic and diluted EPS presented. Sometimes companies will do this if they have large or...
IAS 33 Earnings per Share can be a tricky topic to grasp. You might find it easier to study IAS 33 using one of our quizzes.
The quiz is available by clicking here.
For the purpose of calculating basic earnings per share under IAS 33, earnings is the net profit after deducting:
Non-Controlling Interest (Minority Interest)
So earnings is the net profit after tax minus any minority...
Basic earnings per share is calculated by dividing the net profit or loss on continuing operations by the weighted average number of ordinary shares in issue during the period.
EPS = Net profit or loss...
1. Ordinary Shares
An ordinary share is an equity instrument that is subordinate to all other classes of equity instrument.
They participate in profit for the period only after other types of shares, such as preference...