The profit of the enterprise can be used to replenish the authorized capital, develop production, pay bonuses to employees and other purposes provided for by the charter. In a joint stock company, it can be distributed to pay dividends to shareholders.
It is necessary
- - "Methodological instructions on disclosure of information on profit attributable to one share", approved by the order of the Ministry of Finance No. 29-n dated March 21, 2000;
- - PBU No. 4/99 "Financial statements of the organization";
- - Form No. 2 “Profit and Loss Statement”;
- - Form No. 3 “Statement of changes in equity”.
Instructions
Step 1
When calculating dividends per share of a company, follow the guidelines approved by the Order of the Ministry of Finance dated March 21, 2000. No. 29-n, and PBU No. 4/99 "Financial statements of the organization".
Step 2
The calculation of the return on shares is made in 2 values: basic earnings per share, which reflects the amount of dividends due to shareholders, and diluted earnings, on the basis of which it is possible to predict a possible decrease in profit in the next reporting period.
Step 3
To calculate the basic earnings per share (dividend), first subtract from the net profit indicated on line 2400 of the Profit and Loss Statement (Form # 2) the value of the preferred shares. Then determine the weighted average number of common shares in circulation: add the number of shares for the 1st day of each month in the analyzed period and divide by the number of months. Next, calculate the dividend per share using the formula:
Yes = BPA / SKOA, where Yes is the dividend per share;
BPA - basic earnings per share;
SKOA - weighted average number of ordinary shares.
Step 4
Diluted earnings per share are calculated taking into account possible gains in earnings and the number of ordinary shares. The increase in the basic profit is made upon conversion of the company's securities into ordinary shares and the purchase of shares from the issuer at their market value. When calculating the possible increase, reduce the amount of expenses incurred by the company in connection with the placement of shares and the payment of dividends on them by the amount of income they bring.
Step 5
Calculate the increase in the number of ordinary shares using the formula:
(RS - CR) x KA / RS, where РС is the market value of 1 share during the reporting period;
CR - price of placement of 1 ordinary share;
CA - the total number of ordinary shares.
Step 6
Adjust the base earnings (dividends) and weighted average number of shares by the gain, and calculate the diluted earnings by dividing the resulting dividend by the number of shares.
Step 7
In the financial statements, dividends per share are reflected in form No. 3 “Statement of changes in equity”, which records the indicators of basic and diluted earnings, as well as the calculated values used.
