Question

please explain to me the AS-20 of accountancy

Answer 1

AS 20: Earnings Per Share (EPS)
Earnings per share (EPS) is a financial ratio that provides information regarding earnings available on each equity share held in a company.

This ratio acts as an important financial tool to improve the comparability between two or more companies, as well as between two or more accounting periods.

AS 20 entails the process of calculation of Earnings per share.

There are two types of EPS which are to be reported by enterprises on the face of the statement of profit & loss account even if the amounts disclosed are negative (a loss per share).

1. Basic EPS

2. Diluted EPS