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imported>Doug Williamson |
imported>Doug Williamson |
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| ''Financial ratio analysis - performance ratios.''
| | A bank account set up to hold - separately - funds which are owned by another party. |
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| (Diluted EPS).
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| Diluted earnings per share are calculated as:
| | ==See also== |
| | * [[Custodian]] |
| | * [[Trust account]] |
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| Profit attributable to ordinary shareholders '''÷''' Diluted weighted average number of shares in issue during the period.
| | [[Category:Financial_risk_management]] |
| | | [[Category:Risk_frameworks]] |
| Profit after tax attributable to ordinary shareholders is often known as 'earnings' or 'net profit'.
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| <span style="color:#4B0082">'''''Diluted EPS example'''''</span>
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| Earnings for the period are £40 million and the diluted number of shares is 52 million.
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| EPS = £40m / 52m
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| = £0.77 (= 77 pence)
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| 'Diluted' earnings per share are calculated by adjusting the earnings and number of shares for the effects of 'dilution' of the current ordinary shareholders' entitlements.
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| 'Dilution' is defined in IAS 33 as:
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| The reduction in EPS assuming that the number of shares increases because:
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| #Convertible instruments are converted,
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| #Options or warrants are exercised, or
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| #Ordinary shares are issued on the satisfaction of specified conditions.
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| Relevant accounting standards include IAS 33 and Section 1 of FRS 102.
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| == See also ==
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| * [[Convertible debt]]
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| * [[Dilution]]
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| * [[Earnings]]
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| * [[Earnings per share]]
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| * [[IAS 33]]
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| * [[FRS 102]]
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| * [[Option]]
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| * [[Pence]]
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| * [[Profit attributable to ordinary shareholders]]
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| * [[Warrant]]
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| [[Category:Accounting,_tax_and_regulation]] | |
| [[Category:Corporate_finance]] | |
Revision as of 07:30, 15 April 2019
A bank account set up to hold - separately - funds which are owned by another party.
See also
