Ind AS 33 (Earnings per Share) is the Indian Accounting Standard that prescribes how companies must compute and present earnings per share (EPS) on the face of their financial statements. The standard ensures comparability of EPS between entities and across periods by mandating consistent calculation and disclosure of both basic and diluted EPS.

The Ministry of Corporate Affairs notified Ind AS 33 via the Companies (Indian Accounting Standards) Rules, 2015. It became effective voluntarily from 1 April 2015 and mandatorily from 1 April 2016 for Phase I companies. Ind AS 33 replaces AS 20 for Ind AS-compliant entities.

EPS remains a critical metric for listed Indian companies, with SEBI and investors closely monitoring its movements. Patron's clients in the manufacturing sector have found that even minor EPS changes can drive significant market reactions.

Ind AS 33 at a Glance

Ind AS 33 establishes a single method for determining and presenting earnings per share in financial statements. Its core principle is transparent reporting of both basic and diluted EPS. This standard primarily serves listed companies and those preparing to list shares in public markets.

What is Ind AS 33: Earnings per Share?

Ind AS 33 sets out how an entity must calculate and disclose earnings per share so that users can compare performance between different companies or periods. The standard requires both basic EPS, based on current ordinary shares outstanding, and diluted EPS, which considers all dilutive potential ordinary shares such as convertibles or options.

The Institute of Chartered Accountants of India introduced this standard to align Indian practice with international benchmarks set by IASB’s IAS 33. It replaced the earlier Indian GAAP standard (AS 20), streamlining calculation methods and disclosures as part of India’s broader IFRS convergence initiative.

CFOs, finance teams in listed companies, statutory auditors, CA students preparing for exams, and corporate finance professionals all rely on this standard when analysing or presenting company performance.

Objective of Ind AS 33

• Prescribe principles for determining and presenting earnings per share to enhance comparability between different entities within a reporting period.
• Specify computation methods for basic and diluted EPS based on profit or loss attributable to ordinary equity holders of the parent.
• Establish mandatory disclosure requirements relating to all aspects of EPS computation.

These objectives ensure users receive clear information about an entity’s profitability on a per-share basis. This supports a “true and fair view” as required by Section 129 of the Companies Act, 2013 and strengthens confidence in published financial results.

Who Must Apply Ind AS 33?

Entities covered, applicability table

Ind AS 33 applies mandatorily to all listed entities whose ordinary shares or potential ordinary shares are publicly traded on recognised stock exchanges in India. It also covers companies that are in the process of listing their ordinary shares through an initial public offering or similar arrangement. The requirement extends to both standalone financial statements of the parent company as well as consolidated group accounts.

Entities not listed or not pursuing listing may apply Ind AS 33 voluntarily if they wish to present EPS figures according to these standards.

Applicability Table, Indian Roadmap Context

Scope exclusions

Entities not listed on a recognised stock exchange in India and not in the process of public listing are outside mandatory scope but may apply the standard voluntarily.

EPS is not presented for components other than profit or loss; items recognised directly in other comprehensive income do not require EPS computation under this standard.

When the standard does not apply

Entities preparing only unlisted private company accounts without intention to list are not required to comply with Ind AS 33 unless they opt-in voluntarily.

EPS presentation is not required for items recognised outside profit or loss, such as those covered under standards like Ind AS 41 Agriculture, since these do not form part of “profit or loss” as defined by this standard.

Key Definitions under Ind AS 33

Recognition and Measurement under Ind AS 33

When to recognise

An entity must calculate and present earnings per share for every period presented in its statement of profit and loss if it has issued ordinary shares that are publicly traded or is in the process of issuing such shares (Para 66). Both basic and diluted EPS must be disclosed separately for:

Profit or loss from continuing operations attributable to equity holders

Total profit or loss attributable to equity holders

Where applicable, discontinued operations require separate basic/diluted EPS presentation

EPS must be presented on the face of the statement of profit and loss for each class of ordinary share with different rights (Para 66).

Initial measurement

Basic earnings per share is calculated using this formula:

**Basic EPS = Profit or loss attributable to ordinary equity holders / Weighted average number of ordinary shares outstanding during the period**

The numerator excludes preference dividends (and similar senior claims). The denominator uses a time-weighted average number, each change in share capital during the year is weighted by days outstanding.

Shares issued via bonus issue, split or consolidation require retrospective adjustment across all periods presented so comparatives remain consistent. For example, if Krishna Steel Industries issues bonus shares during FY 2025-26 but after year-end before financial statements are authorised, comparative figures must be restated using adjusted share counts.

Subsequent measurement

Diluted earnings per share incorporates all dilutive potential ordinary shares existing during the period:

**Diluted EPS = Adjusted profit/loss attributable / Adjusted weighted average number including dilutive potential ordinary shares**

Numerator adjustments include adding back interest expense on convertible debentures net of tax effect; preference dividends saved if converted; similar impacts from other instruments convertible into equity.

Denominator adjustments add potential new shares resulting from assumed exercise/conversion using appropriate methods:

, Options/warrants use treasury stock method

, Convertible debentures/preferences use if-converted method

, Each class tested individually; only dilutive instruments included

, Antidilutive instruments are excluded from calculation

Diluted EPS cannot be higher than basic EPS; any instrument whose inclusion would increase earnings per share is antidilutive and omitted from diluted calculation.

Treasury Stock vs If‑Converted Method for Diluted EPS

Ind AS 33 prescribes two main approaches:

Treasury Stock Method: Used for options/warrants that are “in-the-money”. Assume exercise at average market price; proceeds used hypothetically to buy back own shares at same price; net increase equals new issue less repurchased amount. Only net additional dilutive effect increases denominator.

If‑Converted Method: Applied where instruments like convertible debentures/preference shares exist. Assume full conversion at beginning of period (or issue date if later); add converted shares into denominator; add back related interest/dividend expense into numerator after tax adjustment. Each instrument tested separately each reporting date before inclusion as dilutive effect depends on whether it reduces reported earnings per share compared with basic figure.

Both methods ensure only genuinely dilutive effects impact reported diluted earnings per share figures as required by Para 46-57A.

Worked Examples on Ind AS 33

Example 1: Basic and diluted EPS with convertible debentures

Sundaram Holdings Ltd reports profit attributable to equity holders at Rs 50 crore during FY 2025-26 with weighted average outstanding shares at five crore units. Convertible debentures worth Rs 100 crore at eight percent coupon could convert into one crore additional equity shares; tax rate stands at twenty-five percent.

Computation Table

Interest adjustment = Rs 100 crore × eight percent × seventy-five percent = Rs 6 crore added back since interest would not be paid if converted; denominator increases by one crore new equity units issued upon conversion. Conversion lowers reported earnings per share so instrument is dilutive, include it when reporting diluted figure as required by Para 47-49A.

Journal Entry:

No accounting entry arises since EPS affects only presentation/disclosure; adjustments appear solely within notes accompanying statement of profit/loss as reconciliation items between basic/diluted calculations.

Example 2: Bonus issue retrospective adjustment

Krishna Steel Industries had two crore equity units throughout FY 2024-25 but issued one-for-one bonus units on first July twenty twenty-five raising total count retrospectively to four crore units going forward; no further capital changes occurred during period under review. Profits were sixteen crore rupees FY 2024-25; twenty-four crores FY 2025-26 respectively.

Computation Table

Bonus issue triggers retrospective adjustment so prior year comparative recalculated using new total even though bonus occurred after start date but before authorisation date, ensures comparability across periods as required by Para 64-65A.

Journal Entry:

No accounting entry needed solely due to bonus issue’s effect on reported earnings per share calculation; underlying accounting handled under Schedule III/Ind AS 1 while restatement reflected through revised comparative disclosures accompanying statement.

Disclosure Requirements under Ind AS 33

Ind AS 33 mandates detailed disclosures to ensure users of financial statements understand how earnings per share (EPS) is calculated and presented, in line with Schedule III to the Companies Act, 2013. Transparent EPS disclosures enable investors and regulators to assess comparability across periods and entities, especially for listed companies where EPS is market-sensitive.

Auditors must verify these disclosures as part of their opinion on true and fair presentation under SA 700.

Common Mistakes & Industry-Specific Considerations

Common errors auditors flag

• Failing to retrospectively restate EPS for bonus issues, share splits, and share consolidations occurring during or after the reporting period but before financial statements are authorised.
• Including antidilutive instruments in diluted EPS calculation.
• Computing diluted EPS without applying the test for dilution individually for each class of potential ordinary share.
• Using period-end share count instead of weighted average for basic EPS.
• Failing to deduct preference dividends and similar senior claims from numerator.
• Misapplying the treasury stock method when the average market price is below the exercise price (out-of-the-money options are antidilutive).

Industry application notes

Listed companies must treat EPS as a key performance indicator. Ind AS 33 requirements interact directly with Securities and Exchange Board of India (SEBI) quarterly results rules. Even minor changes in reported EPS can trigger significant market movements.

Companies with employee stock option plans (ESOPs) must account for these as potential ordinary shares. The treasury stock method applies at each reporting date, requiring careful tracking to avoid misstatement of diluted EPS.

Entities with complex capital structures, such as those issuing foreign currency convertible bonds (FCCBs), optionally convertible debentures (OCDs), or convertible preference shares, must test each instrument individually for dilution. This often complicates compliance for Indian listed companies.

Ind AS 33 vs AS 20 vs IFRS: Key Differences

The table below compares Ind AS 33, its Indian GAAP predecessor AS 20, and international counterpart IAS 33 across critical aspects:

India's Ind AS 33 closely aligns with IAS 33 issued by the International Accounting Standards Board. The main carve-out is stricter requirements around separate disclosure of continuing versus discontinued operations’ EPS. Indian listed companies must comply with both Ind AS 33 and SEBI regulations, which may impose additional presentation requirements not found in IFRS.

Latest Amendments to Ind AS 33 (FY 2026-27)

No amendments have been notified to Ind AS 33 for FY 2026-27 as of 2026-05-02. The standard continues to apply in its existing form.

Related Standards You Should Know

• [Ind AS 1](/ind-as-1-presentation-of-financial-statements/), EPS presentation on face of P&L follows Ind AS 1 framework.
• [Ind AS 32](/ind-as-32-financial-instruments-presentation/), Classification of preference shares as debt or equity affects EPS numerator.
• [Ind AS 102](/ind-as-102-share-based-payment/), Share-based payments create potential ordinary shares for diluted EPS.
• [Ind AS 105](/ind-as-105-held-for-sale-discontinued-operations/), Discontinued operations require separate EPS presentation.
• [AS 20](/as-20-earnings-per-share/), Equivalent EPS standard for non-Ind AS companies; substantively similar.

Need Help with Ind AS 33 Compliance?

Patron Accounting LLP assists listed companies, NBFCs, and private entities in achieving full compliance with Ind AS 33 Earnings per Share. Our team combines technical expertise with practical experience gained from statutory audits across sectors.

Our service offerings include:

• Statutory Audit
• Ind AS Advisory
• Financial Reporting & Schedule III
• Disclosure Review

Schedule a 30-minute consultation with our Ind AS team, Pune · Mumbai · Delhi · Gurugram.

About This Article

Reviewed by CA & CS Team · Patron Accounting LLP

Technical reviewer: CA Sundram Gupta, FCA

Last reviewed: 2026-05-02

Sources: ICAI Compendium of Accounting Standards · MCA Notification (Companies (Indian Accounting Standards) Rules, 2015, dated 16 February 2015) · IFRS Foundation