What might be the impact on eps

Assignment Help Financial Accounting
Reference no: EM132569268

Entity B has invested in two types of equity investments in listed entities that it does not control. They are treated differently in the financial statements. One of the notes to the financial statements says that the equity investments Entity B holds to invest surplus cash balances are measured at fair value and that changes in fair value are recognised in profit or loss. Another note says that the equity investments it holds in a key supplier are measured at fair value and that changes in fair value are recognised in other comprehensive income (OCI).

Question 1: Earnings per share (EPS) is a key performance indicator. Explain how it can be justified to use two different treatments for equity investments made by the same entity. What might be the impact on EPS if a gain or loss is reported in OCI rather than profit or loss.

Reference no: EM132569268

Questions Cloud

Determining the humanities resources : My main resource for my research was the Shapiro Library, some lived experiences, along with of course some Google search.
Determine the impairment loss and show clearly : Determine the impairment loss and show clearly how the loss should be accounted for in 2020 in Entity C. Explain all the relevant accounting issues
Non-representational work : Is it necessary to know the title of the piece to fully appreciate the work, or any other non-representational work?
What sorts of challenges did chase face : 1. What sorts of challenges did Chase face and overcome in putting Zipcar together?
What might be the impact on eps : Explain how it can be justified to use two different treatments for equity investments made by the same entity. What might be the impact on EPS
Grammar mechanics skills assessment : 1. Label each word in the following sentence in terms of its function in the sentence.
How the transactions should be accounted for in entity : On 1 February 2020, Show how the transactions should be accounted for in Entity A's financial statements for the year ended 31 March 2020.
What amount gain will report : Saleem Co. has outstanding $100 million of 7% bonds, If Saleem Co. calls $10 million of these bonds what amount (gain/loss) it will report?
Do you think our technology conditions us : Do you think our technology conditions us, and what might be the effect.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd