EARNING PER SHARE IAS 33

Revision question on IAS 33 earning per share (basic and diluted)

ii) On 1st April 2015 Bongo Trust issued Tsh 20 million 8% convertible loan stock at par. The terms of the conversion (on 1st April 2018) are that for every Tsh 100 of loan stock, 50 ordinary shares will be issued at the option of loan stockholders. Alternatively, the loan stock will be redeemed at par for cash. Also, on … Read the rest

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Importance of disclosing Diluted Earnings Per Share (DEPS).

IAS 33: Earnings Per Share (EPS) requires listed entities to disclose basic earnings per share as well as diluted earnings per share. In calculating diluted earnings per share, any financial instrument which potentially dilutes earnings per share should be taken into account.

The importance of disclosing diluted Earnings Per Share (DEPS.

Many entities issue financial instruments that allow the holder … Read the rest

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2020 Updated list of International Accounting Standards (IAS)

The following are the list of updated international accounting standards (IAS) in 2020:

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Revision question on calculation of earnings per share.

i) The issued share capital of Mbeya Trust, a publicly listed company on the Dar es Salaam Stock Exchange, on 31st March 2013 was TZS 10 million. Its shares are denominated at TZS 25 each. Mbeya Trust’s earnings attributable to its ordinary shareholders for the year ended 31st March 2013 were also TZS10 million, given an earnings per share of … Read the rest

Four (4) limitation of earning per share (EPS) reporting

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability. Despite the number of advantages related to earning per share reporting there are several limitations associated with earning per share reporting.



The following are limitation

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6 limitations of using accounting ratios in appraising financial performance.

Accounting ratio are used to measure the efficiency and profitability of the company based on its financial reports. They provide a way of expressing relationship between one accounting data point to another, and are the basis of ratio analysis.



The following are limitation of accounting ratios in appraising financial performance:

  • Inconsistent definition of ratios
  • Financial
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