Earnings per share
Basic earnings per share is profit or loss attributable to ordinary shareholders divided by the weighted-average number of ordinary shares outstanding during the period, with adjustments and presentation as required by IAS 33. Diluted EPS considers qualifying potential ordinary shares.
Worked example
Profit attributable to ordinary shareholders is 600,000 and the weighted-average share count is 300,000; basic EPS is 600,000 ÷ 300,000 = 2 per share.
Common mistake
Do not divide by the closing share count when the weighted-average number is required or assume every entity has identical IAS 33 presentation requirements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |