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AS 20

Accountancy

Please clarify what and how this 4/3 came into picture, though they have given an explanation beneath i could not get it

Venkatesh Rathinam

CA Final

★ 15K+

22-May-21 14:18

478

Answers (1)

For every 3 shares you had, you got one share extra as bonus. Suppose, you are having 3 shares. Company gave bonus of 1 share. It means now you are having 4 shares (original 3 + bonus 1) Hence, while calculating EPS, we have to take 4/3

Yoga Vishnu

CA Final

★ 11K+

22-May-21 16:22

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