GENERAL KNOWLEDGE

Detailed explanation-1: -AS 20, Earnings per share, issued by the Council of the ICAI, comes into effect in respect of accounting periods commencing on or after 1-4-2001 and is mandatory in nature from that date, in respect of enterprises whose equity shares or potential equity shares are listed on a recognised stock exchange in India.

Detailed explanation-2: -The objective of this Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. effects of changes in exchange rates in the financial statements.

Detailed explanation-3: -Basic earnings per share will be calculated by dividing the profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding for the period. This computation enables in understanding the earnings attributable to each ordinary share.