Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

EPS

VVavneet5y ago
Hi In question if financial analysis, wh calculations they have used earnings instead of PBIT and preference dividends.
John MoffatJohn MoffatTutor5y ago#1
You are going to have to refer to a specific question because it depends on what the information given is and what the question requires. As I replied to you before, when we use earnings for earning per share or for the PW ratio, then always (just as in Paper FA and Paper FM), the earnings are the profit after interest, after tax, and after preference dividends i.e. the earnings left for ordinary shareholders.
Sign in to reply to this topic.