Topic List

1. IAS 33 Earnings Per Share
2. Basic EPS
3. Effect on EPS of changes in capital structure
4. Diluted EPS
5. Presentation, disclosure and other matters

Syllabus Learning Outcomes

1. Calculate EPS in accordance with relevant accounting standards dealing with:

– Bonus issues

– Full market value issues

– Rights issues

1. Explain the relevance of the diluted EPS and calculate the diluted EPS involving convertible debt and share options (warrants)
2. Explain why the trend of EPS may be a more accurate indicator of performance than a company's profit trend and the importance of EPS as a stock market indicator
3. Discuss the limitations of using EPS as a performance measure