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Sir i did Dec 2009 Q5.
Q5 b. on calculation of diluted EPS i am getting confused. I thought we have to less/deduct tax (25%) from the adjusted profit. $’000
ie. Profit after tax 15, 000
Saving (10,000×8%x75%) 600
Less tax @25% 3, 900
then adjusted earning would be 11, 700But the solution adjusted earning is 15, 600 the did not deduct tax. Why?
Thank you inadvance
Because tax has already been deducted! 15,000 is, as you say, “profit after tax” and 600 is the saving after tax of 800 – that’s why you multiplied it by 75%
OK?
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