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Hello,
In Q2) b) of 2012 (Fresco) the eps figure uses the after-tax-profit before comprehensive income. Is there a general rule as to how the comprehensive income should be treated for eps, or is it always ignored? Is there a reason why it is ignored, maybe to make year-on-year comparisons smoother?
Thanks,
Dan
We’re trying to compare “earnings” so matters such as revaluation increases don’t qualify as earnings. We’re actually looking for “earnings available for equity” but still my comment about “earnings” applies
Thank you Mike,
Sorry I’m not sure I understand why comprehensive income doesn’t affect “earnings available for equity” – isn’t a gain on a leasehold value realisable by the equity holders if they sell the leasehold?
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