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hi
in your calculation of basic and diluted eps in example 5 ( opentuition bk-pg) not same formula was used to calculate both eps
question: earnings after tax is 10m. Of this amt, discontinued operation was 900000
answer:
discontinued operation was not deducted from earnings of basic eps i.e 10m
but
discontinued operation was deducted from earning of diluted eps ie 9100000
That’s correct … and that’s something to remember
The discontinuance will affect future earnings and is therefore taken into account when considering diluted eps
But those earnings from the discontinued operation were actually achieved during the current year and so are correctly included within the calculation for the eps for this current year
Clear?
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