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Discontinued Operations

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Discontinued Operations

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  • February 18, 2019 at 6:13 pm #505655
    jordanstephens71
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    What are the effects of a discontinued operation on earrings per share?

    From what I understand they are not subtracted from a basic earnings per share calculation but are deducted from a diluted earnings per share calculation?

    Am I understanding this correctly

    February 20, 2019 at 9:17 pm #505935
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7222
    • ☆☆☆☆☆

    Hi,

    The figure we use for EPS is the profit for the year, which is a combination of the continuing and discontinued operations profits.

    The only two areas you need to know for FR with regards to diluted EPS are for share options and convertible loan stock.

    Thanks

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