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, capital market and company valuation. EPS gets dilutive under certain circumstances. Dilutive EPS is the real sustainable 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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