Question：Which of the following statements regarding the calculation of EPS is incorrect?
A. Deferred tax charges should be taken into account in arriving at the post-tax profits for the calculation.
B. Cumulative preference share dividends should be deducted in arriving at earnings irrespective of whether they are paid.
C. EPS shows the earnings distributed to ordinary shareholders.
D. Comparatives for the prior period should be shown.
The correct answer is: EPS shows the earnings distributed to ordinary shareholders.
EPS is a key indicator of performance, it has no direct bearing on the amount of a company's distribution to its shareholders. It is calculated on earnings, rather than on dividends.
　　高顿网校温馨提醒
　　各位考生，2016年ACCA备考已经开始，为了方便各位学员能更加系统地掌握考试大纲的重点知识，帮助大家充分备考，体验实战，高顿网校开通了全免费的ACCA题库（包括精题真题和全真模考系统），题库里附有详细的答案解析，学员可以通过多种题型加强练习。戳这里进入ACCA免费题库>>>

微信扫一扫，关注ACCA*7资讯，满满的干货喂饱你！ACCA微信公众号：gaodunaccaACCA分享与交流QQ群：227573128 

展开全文