Home › CA Final › financialreporting › Ind AS 33 — Diluted EPS: If-Converted Method, Treasury Stock Method, Options/Warrants, Convertibles, Contingently Issuable Shares › Profit attributable ₹12,00,000; weighted ordinar…
Profit attributable ₹12,00,000; weighted ordinary shares 5,00,000; weighted options 1,00,000; option exercise price ₹15; average market price ₹20. Diluted EPS:
A₹2.29 (= 12,00,000 / 5,25,000)
B₹2.40 (basic only)
C₹1.90
D₹2.00
Answer & Solution
Correct answer: A. ₹2.29 (= 12,00,000 / 5,25,000)
Proceeds at exercise = 1,00,000 × ₹15 = ₹15,00,000 → buys 15,00,000/20 = 75,000 shares back. Free shares = 1,00,000 − 75,000 = 25,000. Denominator = 5,00,000 + 25,000 = 5,25,000. Earnings unchanged at ₹12,00,000. Diluted EPS = 12,00,000 / 5,25,000 = ₹2.29.
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