Tag: preparation of comparative statements

Questions Related to preparation of comparative statements

Trendz Spa is a company listed on the Bombay Stock Exchange. Its Financial statements for the year ended 31 March 2015 Showed earning per share of Rs.136. 
On 1 October 2015, Trendz spa made a 3 for 1 bonus issue. According to IAS 33 - 'Earning per share', what figure for the 2015 EPS will be shown as comparative information in the financial statements for the year ended 31 March 2016?

accountancy tools of financial statement analysis - comparative and common-size statements preparation of common size statements comparative statements and common-size statements preparation of comparative statements

  1. Rs.34

  2. Rs.45.36

  3. Rs.408

  4. Rs.544

Show answer
Correct Option: A
Explanation:
Earning per share = Earning for equity shareholders 
                                 ----------------------------------------------
                                             No. of shares. 
                                =    Rs-136
                                    -------------
                                       3 + 1 
                                = Rs-34 per share. 

Observing changes in the financial variables across the years___________.

accountancy tools of financial statement analysis - comparative and common-size statements preparation of common size statements comparative statements and common-size statements preparation of comparative statements

  1. Vertical analysis

  2. Horizontal analysis

  3. Inter firm comparison

  4. None of these

Show answer
Correct Option: B
Explanation:

Observing changes in the financial variables across the years is done through horizontal analysis. Horizontal analysis is a trend analysis where the firm compares ratios, statements etc over a period of time.