In the following list of shares issued, for the purpose of calculation of weighted average number of shares, from which date, weight is to be…
CA Intermediate · Advanced Accounting · MTP · May 2025
In the following list of shares issued, for the purpose of calculation of weighted average number of shares, from which date, weight is to be considered: (i) Equity Shares issued in exchange of cash, (ii) Equity Shares issued as a result of conversion of a debt instrument, (iii) Equity Shares issued in exchange for the settlement of a liability of the enterprise, (iv) Equity Shares issued for rendering of services to the enterprise, (v) Equity Shares issued in lieu of interest and/or principal of an other financial instrument, (vi) Equity Shares issued as consideration for the acquisition of an asset other than in cash.
Suggested Answer and Working Notes:
The following dates should be considered for consideration of weights for the purpose of calculation of weighted average number of shares in the given situations: (i) Date of Cash receivable (ii) Date of conversion (iii) Date on which settlement becomes effective (iv) When the services are rendered (v) Date when interest ceases to accrue (vi) Date on which the acquisition is recognised.
Topics: AS 20, AS 19
Related Questions in this Topic
- Would completely vested options to purchase shares of a company be included in the computation of Basic EPS? BC Limited ...
- A Limited had acquired an item of Property, Plant and Equipment on 1 st April, 2022 for ₹ 48,000 lakhs. The following a...
- On 1st April, 2025 Zed Limited had 5,00,000 equity shares of 10 each (5 paid up) and 45,000 10% Preference shares of 100...
- When capitalisation of borrowing cost should cease as per Accounting Standard 16? Explain in brief. In the following li...
- P Ltd. has 60% voting right in Q Ltd. Q Ltd. has 20% voting right in R Ltd. Also, P Ltd. directly enjoys voting right of...