EPS in AS-20, how to implement in MSME balance sheets
Practical aspect in case of Bonus Shares
Since in
Reference : MCA website : https://www.mca.gov.in/Ministry/notification/pdf/AS_20.pdf
Para 24 of the AS-20 clearly says
In case of a bonus issue or a share split, equity shares are issued to existing shareholders for no additional consideration. Therefore, the number of equity shares outstanding is increased without an increase in resources. The number of equity shares outstanding before the event is adjusted for the proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the earliest period reported.
For example, upon a two-for-one bonus issue, the number of shares outstanding prior to the issue is multiplied by a factor of three to obtain the new total number of shares, or by a factor of two to obtain the number of additional shares.
means
Last year also, you have to take the bigger denominator.
Old existing shares ; 1 lakh
bonus issue : 9:1
total 10 lakh shares
now
for EPS, you have to take 10 lakh shares as denominator in both years FY 22-23 and FY 23-24