powered by logo

Forums

Diluted EPS

CFA

answered on 17-Mar-24 11:13

Did not understand the question and the solution

latest answer

EPS is computed based on WA shares outstanding during reporting period It is not based on year end count of shares Numerator is pat and denominator is share count as explained above All shares and share equivalents are taken based on time they were OS in a year. Warrants and options which can be converted to equity shares are also added to share count provided they are dilutive i.e by adding them to denominator, the Dilluted EPS comes down If a share is issued at a rpice equivalent or at higher price than market then existing shareholders are not losing anyvalue so such kind of shares are anti dilutive and are not added to denominator. in current case warrant is exercisable at 20 and Avg share price during year is 15 so existing share holders are not unduly disadvantaged is warrants are converted to equity hence these are anti dilutive and hence the warrants count is not added to denominator. Hence share count is same 50000 option B If warrants were dilutive then suitable computation is made as explained by faculty in class to arrive at Diluted EPS

Vasudha TK

Vasudha TK

CFA L1

70

1

192

Computation of basic and diluted EPS

CFA

answered on 17-Mar-24 11:13

Why are we considering the antidilutive impact Also how to determine if it must be considered everytime

latest answer

It must be considered every time - explained in response to previous query

Vasudha TK

Vasudha TK

CFA L1

70

1

149

Deduction u/s 10(15)

Direct Taxation

answered on 18-Mar-24 18:38

Is the 3rd point is still relevant or not?

latest answer

Yes. Post office savings account interest is exempt upto 3500 in case of Individual account and 7000 in case of joint account.

1 Minute Review

1 Minute Review

CA Inter

405

1

320

Notes - for Videos

Auditing

answered on 16-Mar-24 12:37

In Auditing - Notes pdfs are not properly attached in the videos and I am confused on where to download the same. Please help.

latest answer

you can download from resources section.

NIKIL KAROL

NIKIL KAROL

CA Inter

0

1

186

Blocked Credit- leasing, renting and hiring of motor vehicles, vessels, or aircraft

Indirect Taxation

answered on 18-Mar-24 18:29

My doubt is regarding the example provided in this section ie renting car. ITC in respect of rented car is not blocked since it is intended for taxable supply of transportation of passengers. So when we rent such a car on which ITC is not blocked, why ITC in respect of renting is blocked?

latest answer

If a person is engaged in the business of transportation of passengers then only ITC is allowed. But for example, if I take a vehicle on rent for travel from one place to another I cannot claim ITC since I am not in the business of transportation of passengers.

Amala Joy

Amala Joy

CA Inter

70

1

301

Gift vouchers

Indirect Taxation

answered on 22-Mar-24 18:04

If a company has issued gift voucher will the gift voucher will be taxable under GST

latest answer

Yes. Since voucher is also taxable under GST.

Alocius Rebiks

Alocius Rebiks

CA Inter

350

3

210

SIRC-ICAI

Others

answered on 16-Mar-24 10:42

Is library will be open on Saturdays?

latest answer

YOu can contact respective branch

Rajesh Balaji

Rajesh Balaji

CA Final

0

1

475

Rent v/s Lease

Financial Reporting

answered on 16-Mar-24 10:32

what if we have the agreement with service provider that for example, we want only lenovo computers for 3 years. In that case will it be considered as Leases or Rent?

latest answer

If the specific laptop cannot be replaced - lease.

Chaitra Hegde

Chaitra Hegde

Qualified CA

10K+

1

162

internal environment

Strategic Management

answered on 16-Mar-24 10:40

what is the difference between competitive landscape and strategic group mapping?Isn't the end goal the same,ie,identifying competitors?

latest answer

Competitive landscape is a wider term. Strategic group mapping is a tool to evaluate competitive landscape.

SANSKRITI BADRI 2111339

SANSKRITI BADRI 2111339

CA Final

4K+

1

190

Borrowing cost

Financial Reporting

answered on 09-Apr-24 17:58

Why borrowing of 10 lacs of real estate co is not treated as specific borrowing?

latest answer

Its specific only.

binu mathew

binu mathew

CA Final

0

1

171