Cima F2 Exam Question No 52

Question No 52:

The basic EPS calculation is

 EPS = Earnings / Number of shares

This is expressed as dollars or cents per share (cents if the amount is less that $1).

• Earnings: Net profit attributable to ordinary equity shareholders of the parent entity, i.e. group profit after tax less profit attributable to non-controlling interests and irredeemable preference share dividends.
• Number of shares: Weighted average number of ordinary shares on a time weighted basis.