PPT: Accounting Standards (20) | Advanced Accounting for CA Intermediate PDF Download

 Page 1


Accounting Standard (AS) - 20
Page 2


Accounting Standard (AS) - 20
Index
? Objective            3       
? Definitions 4
? Scope & Presentation 5
? Basic Earning Per Share (Measurement) 6-11
? Diluted Earning Per Share(Measurement) 12-14
? Disclosure 15
2
Page 3


Accounting Standard (AS) - 20
Index
? Objective            3       
? Definitions 4
? Scope & Presentation 5
? Basic Earning Per Share (Measurement) 6-11
? Diluted Earning Per Share(Measurement) 12-14
? Disclosure 15
2 Objective
? To prescribe principals for determination and presentation of 
earning per share.
? To improve comparability of performance among different 
enterprises
and
among different accounting period in same enterprise. 
3
Page 4


Accounting Standard (AS) - 20
Index
? Objective            3       
? Definitions 4
? Scope & Presentation 5
? Basic Earning Per Share (Measurement) 6-11
? Diluted Earning Per Share(Measurement) 12-14
? Disclosure 15
2 Objective
? To prescribe principals for determination and presentation of 
earning per share.
? To improve comparability of performance among different 
enterprises
and
among different accounting period in same enterprise. 
3 Definitions
? An equity share is a share other than a preference share.
? A preference share is a share carrying preferential rights to 
dividends and repayment of capital.
? A financial instrument is any contract that gives rise to both a 
financial asset of one enterprise and a financial liability or equity 
shares of another enterprise.
? A potential equity share is a financial instrument or other contract 
that entitles, or may entitle, its holder to equity shares.
? Fair value is the amount for which an asset could be exchanged, 
or a liability settled, between knowledgeable, willing parties in an 
arm’s length transaction.
4
Page 5


Accounting Standard (AS) - 20
Index
? Objective            3       
? Definitions 4
? Scope & Presentation 5
? Basic Earning Per Share (Measurement) 6-11
? Diluted Earning Per Share(Measurement) 12-14
? Disclosure 15
2 Objective
? To prescribe principals for determination and presentation of 
earning per share.
? To improve comparability of performance among different 
enterprises
and
among different accounting period in same enterprise. 
3 Definitions
? An equity share is a share other than a preference share.
? A preference share is a share carrying preferential rights to 
dividends and repayment of capital.
? A financial instrument is any contract that gives rise to both a 
financial asset of one enterprise and a financial liability or equity 
shares of another enterprise.
? A potential equity share is a financial instrument or other contract 
that entitles, or may entitle, its holder to equity shares.
? Fair value is the amount for which an asset could be exchanged, 
or a liability settled, between knowledgeable, willing parties in an 
arm’s length transaction.
4 Scope and Presentation
Scope:
This standard is applicable to all entities.
Presentation:
An enterprise should present :
? basic and diluted earnings per share (positive or negative) on the 
face of the statement of profit and loss
? for each class of equity shares.
5