## AS 20: Calculating Basic EPS When a Rights Issue Occurs
Once the TERP and share bifurcation are complete, follow this three-EPS template.
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### Formula Recap
$$\text{Basic EPS} = \frac{\text{Earnings Attributable to Equity Shareholders (EAFESH)}}{\text{Weighted Average Number of Equity Shares (WANES)}}$$
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### Three EPS Figures Required
#### 1. Current Year (CY) Basic EPS
$$\text{WANES}_{CY} = \text{Opening shares (full year)} + \text{Bonus shares from right (full year)} + \text{Consideration shares} \times \frac{\text{months remaining}}{12}$$
#### 2. Prior Year (PY) – Original (as previously reported)
Use the prior year's own EAFESH and WANES as originally published.
#### 3. Prior Year (PY) – Restated
Restate WANES by adding the bonus element (identified in the current-year right issue) to the original PY denominator:
$$\text{WANES}_{PY,\text{restated}} = \text{Original PY WANES} + \text{Bonus shares from current right issue}$$
The numerator (EAFESH) does not change in restated figures.
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### ICAI Method (Adjustment Factor)
For the period before the right issue:
$$\text{Adjusted shares (pre-right)} = \text{Opening shares} \times \text{Adjustment Factor} \times \frac{\text{months before right issue}}{12}$$
For the period after the right issue:
$$\text{Shares (post-right)} = \text{Total shares after right issue} \times \frac{\text{months after right issue}}{12}$$
For PY restatement, divide original EPS by the adjustment factor.
> Both the bifurcation method and the ICAI adjustment-factor method yield the same final EPS — use whichever your exam question specifies.