Chapter 19

Financial Statement Analysis and the Tool Kit of the Analyst: II Earnings per Share (EPS) Analysis

Earnings Per Share(EPS) is the single most important ratio for the investors, caoital m arket and company vaiuation. EPS gets dilutive; under certain circumstan ces. Dilutive EPS ts the real sastainable EPS.


This chapter seeks to enable you to develop knowledge and understanding of:

  1. Meaning and significance of EPS.

  2. Scope and coverage of AS-20 on ‘Earnings Per Share’.

  3. Principles and norms of standard accounting treatment of EPS and other related issues.

  4. Restatement of EPS consequent to issue of non-resource generating ...

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