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CA Final Ind AS 33 — Diluted EPS: If-Converted Method, Treasury Stock Method, Options/Warrants, Convertibles, Contingently Issuable Shares — practice questions
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Practice CA Final Ind AS 33 — Diluted EPS: If-Converted Method, Treasury Stock Method, Options/Warrants, Convertibles, Contingently Issuable Shares in the app →Under Ind AS 33, when calculating DILUTED EPS, options and warrants are treated using the TREASURY STOCK methoOptions and warrants are DILUTIVE for diluted EPS only when:Convertible preference shares are ANTI-dilutive when:Entity A has 25,000 4% debentures at ₹1 nominal convertible 1:1. Profit before tax ₹80,000; after tax ₹64,000 ABC Ltd. has 10,00,000 ordinary shares and 1,000 ₹100 10% convertible bonds (each convertible into 20 shares).ABC Ltd. issued 20 lakh shares and 1 lakh warrants exercisable at ₹30. Average market price ₹37. Dilution per Performance-based EMPLOYEE share options (issuance contingent on satisfying performance + service conditions) Convertible 8% loan stock ₹12,50,000 (₹100 each) issued 1 Oct 20X1; conversion rates from 30 Jun 20X6: 135, 13Entity issued ₹12,50,000 8% convertible loan stock on 1 Oct 20X1; 1,500,000 ordinary shares; year ends 30 JuneEntity has 40 lakh shares + 6.3 lakh options exercisable at ₹70/share. Average market price 20X8 ₹160; PAT ₹6,Profit attributable ₹12,00,000; weighted ordinary shares 5,00,000; weighted options 1,00,000; option exercise A business combination agreement provides 5,000 contingent shares for each new retail site opened in 20X1 + 1,An entity has potential ordinary shares from BOTH convertible debt and options. To rank-test for dilution, IndABC Ltd. has issued staff share options in 20X1 that can be exercised after 3 years' service. For DILUTED EPS,If conversion is contingent on BOTH future earnings AND future share market price, contingently issuable shareWhen potential ordinary shares are CANCELLED or LAPSE during the period, they are: