Scope of  Earnings Per Share :

This Standard should be applied by all the entities. However, a Small and Medium Sized Company and a Small and Medium Sized non-corporate entity falling in Level II or Level III, as defined in Appendix 1 to this Compendium, ‘Applicability of Accounting Standards to Various Entities’, may not disclose diluted earning per share (both including and excluding extraordinary items). Further, a non-corporate Small and Medium Sized Entity falling in level III as defined in Appendix 1 to this Compendium, may not disclose the information required by paragraph 48(ii) of the standard.

 In consolidated financial statements, the information required by this Standard should be presented on the basis of consolidated information.2

In the case of a parent (holding enterprise), users of financial statements are usually concerned with, and need to be informed about, the results of operations of both the enterprise itself as well as of the group as a whole. Accordingly, in the case of such enterprises, this Standard requires the presentation of earnings per share information on the basis of consolidated financial statements as well as individual financial statements of the parent. In consolidated financial statements, such information is presented on the basis of consolidated information.