EPS Calculator (AS 20) – Basic and Diluted Earnings per Share

What this calculator does

Enter the profit, the opening share count and each share capital event of the year – fresh issues, buy-backs, bonus issues, splits and rights issues – and the tool builds the full AS 20 working: the day-weighted average number of equity shares with every retrospective factor applied, basic EPS, diluted EPS with the anti-dilution sequencing done correctly, the restated previous-year EPS, and a drafted note ready to edit, copy and print with the CalcGuru working header. Everything runs in your browser; nothing is uploaded.

How the weighted average works

Shares enter the count from the date the consideration is receivable and leave on buy-back, weighted by days outstanding over the 365-day year. A bonus issue or split carries no consideration, so it is treated as if it had happened at the start of the earliest period – the tool multiplies all earlier periods (and the previous year EPS) by the bonus factor. A rights issue priced below fair value contains a bonus element: the tool computes the theoretical ex-rights price and applies the adjustment factor of fair value over TERP to the pre-rights periods and the prior year, exactly as AS 20 prescribes.

Diluted EPS and the anti-dilution test

Convertible debentures add back the interest saved net of tax; convertible preference shares add back the dividend; options and warrants contribute only the shares deemed issued for no consideration, computed against the average market price of the period. The tool then ranks every series from most dilutive to least dilutive by earnings per incremental share and includes them one by one, stopping the moment a series would push EPS back up – the sequencing step most manual workings skip. In a loss year every potential equity share is anti-dilutive, and the tool reports diluted EPS equal to basic accordingly.

The SMC carve-out

A Small and Medium Sized Company under the Companies (Accounting Standards) Rules, 2021 – unlisted, not a bank, financial institution or insurer, turnover up to Rs 250 crore and borrowings up to Rs 50 crore in the preceding year, and not a holding or subsidiary of a non-SMC – is exempt only from disclosing diluted EPS. Basic EPS remains mandatory on the face of the statement of profit and loss, and the note must state that the exemption has been availed. Tick the SMC box and the drafted note handles both automatically.

EPS under AS 20 – Frequently Asked Questions

Which profit figure is used for basic EPS?

Net profit or loss after tax attributable to equity shareholders – that is, after deducting preference dividends and any tax attributable to them. A loss is disclosed the same way, as a loss per share.

How does a bonus issue affect EPS?

Bonus shares are included as if issued at the beginning of the earliest period reported, because no consideration flows in. Both the current year denominator and the previous year comparative EPS are adjusted by the bonus factor.

What is the theoretical ex-rights price adjustment?

When rights shares are issued below fair value, the discount is effectively a part-bonus. The pre-rights share count is multiplied by fair value divided by the theoretical ex-rights price, where TERP equals the aggregate fair value before the rights plus the rights proceeds, divided by the shares after the issue.

How are options treated in diluted EPS?

Options are deemed exercised: the assumed proceeds are treated as an issue at the average market price of the period, and only the balance – the shares deemed issued for no consideration – is added to the denominator. Options with an exercise price at or above the average price are anti-dilutive and excluded.

What if a bonus issue happens after the year end?

If a bonus issue, split or consolidation occurs after the balance sheet date but before the board approves the financial statements, AS 20 requires the per-share calculations of both the current and previous year to be based on the new number of shares, with disclosure of that fact.

Is an SMC exempt from EPS disclosure entirely?

No. The exemption covers only diluted EPS. Basic EPS must still be presented on the face of the statement of profit and loss with the nominal value of the shares, and the availing of the exemption must be disclosed.