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Net Realisable Value (NRV) for Inventory

Topic: AS 1 to AS 10Chapter: Chapter 1
NRV=Estimated Selling Price−Estimated Costs of Completion−Estimated Costs Necessary to Make the Sale\text{NRV} = \text{Estimated Selling Price} - \text{Estimated Costs of Completion} - \text{Estimated Costs Necessary to Make the Sale}
Used under AS 2, 'Valuation of Inventories', to determine the value at which inventory should be carried in the financial statements, which is the lower of cost or Net Realisable Value. This formula calculates the NRV component.

Weighted Average Cost (WAC) for Inventory

Topic: AS 1 to AS 10Chapter: Chapter 1
Weighted Average Cost Per Unit=Total Cost of Goods Available for SaleTotal Units Available for Sale\text{Weighted Average Cost Per Unit} = \frac{\text{Total Cost of Goods Available for Sale}}{\text{Total Units Available for Sale}}
Applied under AS 2, 'Valuation of Inventories', when using the weighted average method to determine the cost of inventory and the cost of goods sold. This method is suitable for interchangeable items.

Cash Flow from Operating Activities (Indirect Method)

Topic: AS 1 to AS 10Chapter: Chapter 1
Cash Flow from Operating Activities=Net Profit Before Tax and Extraordinary Items+Non-Cash Expenses (e.g., Depreciation, Amortisation)−Non-Operating Incomes (e.g., Interest Income, Dividend Income)±Changes in Working Capital (Decrease in Current Assets / Increase in Current Liabilities are added; Increase in Current Assets / Decrease in Current Liabilities are subtracted)\text{Cash Flow from Operating Activities} = \text{Net Profit Before Tax and Extraordinary Items} \\ + \text{Non-Cash Expenses (e.g., Depreciation, Amortisation)} \\ - \text{Non-Operating Incomes (e.g., Interest Income, Dividend Income)} \\ \pm \text{Changes in Working Capital (Decrease in Current Assets / Increase in Current Liabilities are added; Increase in Current Assets / Decrease in Current Liabilities are subtracted)}
Used under AS 3, 'Cash Flow Statements', to calculate the cash generated from an entity's primary revenue-generating activities by adjusting the net profit for non-cash items, non-operating items, and changes in working capital.

Percentage of Completion for Construction Contracts

Topic: AS 1 to AS 10Chapter: Chapter 1
Percentage of Completion=Contract Costs Incurred to DateEstimated Total Contract Costs×100\text{Percentage of Completion} = \frac{\text{Contract Costs Incurred to Date}}{\text{Estimated Total Contract Costs}} \times 100
Applied under AS 7, 'Construction Contracts', when the outcome of a construction contract can be estimated reliably. This formula determines the stage of completion of the contract, which is crucial for recognizing revenue and profit proportionally.

Profit/Loss Recognition on Construction Contracts

Topic: AS 1 to AS 10Chapter: Chapter 1
Profit Recognised for the Period=(Total Estimated Contract Revenue−Total Estimated Contract Costs)×Percentage of Completion−Profit Recognised in Prior Periods\text{Profit Recognised for the Period} = (\text{Total Estimated Contract Revenue} - \text{Total Estimated Contract Costs}) \times \text{Percentage of Completion} - \text{Profit Recognised in Prior Periods}
Used under AS 7, 'Construction Contracts', to calculate the amount of profit or loss attributable to the current accounting period based on the percentage of completion. This ensures profit is recognized as the work progresses.

Straight Line Method (SLM) Depreciation

Topic: AS 1 to AS 10Chapter: Chapter 1
Annual Depreciation=Cost of Asset−Residual ValueUseful Life of Asset\text{Annual Depreciation} = \frac{\text{Cost of Asset} - \text{Residual Value}}{\text{Useful Life of Asset}}
Applied under AS 10, 'Property, Plant and Equipment', to allocate the depreciable amount of an asset systematically over its useful life. This method results in a constant annual depreciation charge.

Written Down Value (WDV) Method Depreciation

Topic: AS 1 to AS 10Chapter: Chapter 1
Annual Depreciation=Written Down Value at Beginning of Period×Depreciation Rate\text{Annual Depreciation} = \text{Written Down Value at Beginning of Period} \times \text{Depreciation Rate}
Used under AS 10, 'Property, Plant and Equipment', where the depreciation charge decreases over the asset's useful life. The depreciation rate is applied to the carrying amount (WDV) of the asset at the beginning of the period.

Net Realisable Value (NRV)

Topic: AS 1 to AS 10Chapter: Chapter 1
NRV=Estimated Selling Price−Estimated Costs of Completion−Estimated Costs to SellNRV = \text{Estimated Selling Price} - \text{Estimated Costs of Completion} - \text{Estimated Costs to Sell}
Calculates the net realisable value of inventory, which is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories are valued at the lower of cost and NRV as per AS 2.

Weighted Average Cost (WAC) per unit

Topic: AS 1 to AS 10Chapter: Chapter 1
WAC per unit=Cost of opening inventory+Cost of purchasesUnits in opening inventory+Units purchased\text{WAC per unit} = \frac{\text{Cost of opening inventory} + \text{Cost of purchases}}{\text{Units in opening inventory} + \text{Units purchased}}
Calculates the weighted average cost per unit of inventory, used for valuing inventory issues and closing inventory under the weighted average method as per AS 2.

Cost of Inventory

Topic: AS 1 to AS 10Chapter: Chapter 1
Cost of Inventory=Purchase Cost+Conversion Costs+Other Costs\text{Cost of Inventory} = \text{Purchase Cost} + \text{Conversion Costs} + \text{Other Costs}
Defines the total cost of inventory, comprising all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition as per AS 2.

Revenue Recognition (Percentage of Completion Method)

Topic: AS 1 to AS 10Chapter: Chapter 1
Revenue Recognised=(Costs incurred to dateEstimated total contract costs)×Total contract revenue\text{Revenue Recognised} = \left( \frac{\text{Costs incurred to date}}{\text{Estimated total contract costs}} \right) \times \text{Total contract revenue}
Calculates the amount of contract revenue to be recognised in a period under the percentage of completion method, based on the proportion of contract costs incurred to date to the estimated total contract costs as per AS 7.

Profit Recognition (Percentage of Completion Method)

Topic: AS 1 to AS 10Chapter: Chapter 1
Profit Recognised=Revenue Recognised−Costs incurred to date\text{Profit Recognised} = \text{Revenue Recognised} - \text{Costs incurred to date}
Calculates the profit to be recognised in a period under the percentage of completion method, by subtracting the costs incurred to date from the revenue recognised for that period as per AS 7.

Straight Line Depreciation

Topic: AS 1 to AS 10Chapter: Chapter 1
Depreciation=Cost of Asset−Residual ValueUseful Life\text{Depreciation} = \frac{\text{Cost of Asset} - \text{Residual Value}}{\text{Useful Life}}
Calculates the annual depreciation expense using the straight-line method, which allocates an equal amount of depreciation over the asset's useful life as per AS 10.

Written Down Value (WDV) Depreciation

Topic: AS 1 to AS 10Chapter: Chapter 1
Depreciation=Carrying Amount at beginning of period×Depreciation Rate\text{Depreciation} = \text{Carrying Amount at beginning of period} \times \text{Depreciation Rate}
Calculates the annual depreciation expense using the written down value (reducing balance) method, where depreciation is charged as a fixed percentage on the asset's carrying amount each year as per AS 10.

Carrying Amount of PPE

Topic: AS 1 to AS 10Chapter: Chapter 1
Carrying Amount=Cost−Accumulated Depreciation−Accumulated Impairment Losses\text{Carrying Amount} = \text{Cost} - \text{Accumulated Depreciation} - \text{Accumulated Impairment Losses}
Represents the amount at which an asset is recognised in the balance sheet after deducting any accumulated depreciation and accumulated impairment losses as per AS 10.

Operating Activities (Indirect Method) - Step 1: Operating Profit Before Working Capital Changes

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Operating Profit Before Working Capital Changes=Net Profit Before Tax and Extraordinary Items+Non-cash Expenses (e.g., Depreciation, Amortisation)−Non-cash Incomes (e.g., Amortisation of Premium)+Non-operating Expenses (e.g., Interest Expense, Loss on Sale of Assets)−Non-operating Incomes (e.g., Interest Income, Dividend Income, Profit on Sale of Assets)\text{Operating Profit Before Working Capital Changes} = \text{Net Profit Before Tax and Extraordinary Items} \\ + \text{Non-cash Expenses (e.g., Depreciation, Amortisation)} \\ - \text{Non-cash Incomes (e.g., Amortisation of Premium)} \\ + \text{Non-operating Expenses (e.g., Interest Expense, Loss on Sale of Assets)} \\ - \text{Non-operating Incomes (e.g., Interest Income, Dividend Income, Profit on Sale of Assets)}
This formula adjusts the Net Profit Before Tax and Extraordinary Items for non-cash items (like depreciation) and non-operating items (like interest and dividend income/expense, and profit/loss on sale of assets) to arrive at the operating profit before considering changes in working capital. This is the first step in the indirect method of calculating cash flow from operating activities.

Operating Activities (Indirect Method) - Step 2: Cash Generated from Operations

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
\text{Cash Generated from Operations} = \text{Operating Profit Before Working Capital Changes} \\ + \text{Decrease in Current Assets (excluding Cash & Cash Equivalents)} \\ - \text{Increase in Current Assets (excluding Cash & Cash Equivalents)} \\ + \text{Increase in Current Liabilities (excluding Bank Overdraft)} \\ - \text{Decrease in Current Liabilities (excluding Bank Overdraft)}
This formula takes the Operating Profit Before Working Capital Changes and adjusts it for changes in current assets and current liabilities. A decrease in current assets or an increase in current liabilities implies a cash inflow, while an increase in current assets or a decrease in current liabilities implies a cash outflow, in the context of operating activities.

Operating Activities (Indirect Method) - Step 3: Net Cash Flow from Operating Activities

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Net Cash Flow from Operating Activities=Cash Generated from Operations−Income Tax Paid (net of refunds)±Cash Flow from Extraordinary Items\text{Net Cash Flow from Operating Activities} = \text{Cash Generated from Operations} \\ - \text{Income Tax Paid (net of refunds)} \\ \pm \text{Cash Flow from Extraordinary Items}
After calculating cash generated from operations, this formula deducts the actual income tax paid during the period (not the provision) and adjusts for any cash flows related to extraordinary items (which are rare and infrequent) to arrive at the final net cash flow from operating activities.

Net Cash Flow from Investing Activities

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
\text{Net Cash Flow from Investing Activities} = \text{Cash Inflows from Sale of Fixed Assets & Investments} \\ - \text{Cash Outflows for Purchase of Fixed Assets & Investments} \\ + \text{Interest Received} \\ + \text{Dividends Received}
This formula aggregates all cash flows related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents. It includes proceeds from sales, payments for purchases, and income received from investments like interest and dividends.

Net Cash Flow from Financing Activities

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
\text{Net Cash Flow from Financing Activities} = \text{Cash Inflows from Issue of Shares & Debentures} \\ - \text{Cash Outflows for Redemption of Debentures/Preference Shares & Buyback of Shares} \\ - \text{Interest Paid} \\ - \text{Dividends Paid}
This formula calculates the cash flows that result in changes in the size and composition of the owner's capital and borrowings of the enterprise. It includes proceeds from issuing shares/debt, payments for redeeming debt/shares, and payments of interest and dividends to providers of finance.

Net Increase/Decrease in Cash and Cash Equivalents

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Net Increase/(Decrease) in Cash and Cash Equivalents=Net Cash Flow from Operating Activities+Net Cash Flow from Investing Activities+Net Cash Flow from Financing Activities\text{Net Increase/(Decrease) in Cash and Cash Equivalents} = \text{Net Cash Flow from Operating Activities} \\ + \text{Net Cash Flow from Investing Activities} \\ + \text{Net Cash Flow from Financing Activities}
This formula sums up the net cash flows from all three primary activities (operating, investing, and financing) to determine the overall net increase or decrease in the entity's cash and cash equivalents during the period.

Closing Cash and Cash Equivalents

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Closing Cash and Cash Equivalents=Opening Cash and Cash Equivalents+Net Increase/(Decrease) in Cash and Cash Equivalents\text{Closing Cash and Cash Equivalents} = \text{Opening Cash and Cash Equivalents} \\ + \text{Net Increase/(Decrease) in Cash and Cash Equivalents}
This formula reconciles the opening balance of cash and cash equivalents with the closing balance, using the net increase or decrease calculated from the cash flow statement. This serves as a crucial check on the accuracy of the cash flow statement.

Cash Flow from Operating Activities (Indirect Method)

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Cash Flow from Operating Activities=Net Profit Before Tax and Extraordinary Items±Adjustments for Non-Cash Items±Adjustments for Non-Operating Items±Changes in Working Capital−Income Tax Paid\text{Cash Flow from Operating Activities} = \text{Net Profit Before Tax and Extraordinary Items} \pm \text{Adjustments for Non-Cash Items} \pm \text{Adjustments for Non-Operating Items} \pm \text{Changes in Working Capital} - \text{Income Tax Paid}
This formula calculates the cash flow from operating activities by starting with net profit before tax and extraordinary items and adjusting it for non-cash expenses/incomes, non-operating expenses/incomes, and changes in current assets and liabilities, finally deducting income tax paid.

Cash Flow from Operating Activities (Direct Method)

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Cash Flow from Operating Activities=Cash Receipts from Customers−Cash Paid to Suppliers and Employees−Cash Paid for Operating Expenses−Income Tax Paid\text{Cash Flow from Operating Activities} = \text{Cash Receipts from Customers} - \text{Cash Paid to Suppliers and Employees} - \text{Cash Paid for Operating Expenses} - \text{Income Tax Paid}
This formula calculates cash flow from operating activities by aggregating major classes of gross cash receipts and gross cash payments arising from operating activities.

Cash Flow from Investing Activities

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Cash Flow from Investing Activities=Cash Inflows from Sale of Fixed Assets & Investments−Cash Outflows for Purchase of Fixed Assets & Investments\text{Cash Flow from Investing Activities} = \text{Cash Inflows from Sale of Fixed Assets \& Investments} - \text{Cash Outflows for Purchase of Fixed Assets \& Investments}
This formula calculates the net cash generated or used in investing activities, which relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Cash Flow from Financing Activities

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Cash Flow from Financing Activities=Cash Inflows from Issue of Shares & Debentures & Borrowings−Cash Outflows for Redemption of Shares & Debentures & Repayment of Borrowings & Dividends Paid\text{Cash Flow from Financing Activities} = \text{Cash Inflows from Issue of Shares \& Debentures \& Borrowings} - \text{Cash Outflows for Redemption of Shares \& Debentures \& Repayment of Borrowings \& Dividends Paid}
This formula calculates the net cash generated or used in financing activities, which result in changes in the size and composition of the owner's capital and borrowings of the enterprise.

Cash and Cash Equivalents at End of Period

Topic: AS 3 - Cash Flow StatementsChapter: Chapter 1
Cash & Cash Equivalents at End=Cash & Cash Equivalents at Beginning+Net Increase/Decrease in Cash & Cash Equivalents\text{Cash \& Cash Equivalents at End} = \text{Cash \& Cash Equivalents at Beginning} + \text{Net Increase/Decrease in Cash \& Cash Equivalents}
This formula reconciles the opening and closing balances of cash and cash equivalents by adding the net change in cash and cash equivalents during the period to the opening balance.

Exchange Difference on Monetary Items (AS 11)

Topic: AS 11 to AS 29Chapter: Chapter 1
Exchange Difference=(Closing Exchange Rate−Transaction/Opening Exchange Rate)×Foreign Currency Amount\text{Exchange Difference} = (\text{Closing Exchange Rate} - \text{Transaction/Opening Exchange Rate}) \times \text{Foreign Currency Amount}
This formula calculates the gain or loss arising from changes in exchange rates between the transaction date (or previous balance sheet date) and the reporting date for monetary items denominated in a foreign currency.

Goodwill or Capital Reserve on Amalgamation (AS 14 - Purchase Method)

Topic: AS 11 to AS 29Chapter: Chapter 1
Goodwill/Capital Reserve=Purchase Consideration−(Fair Value of Assets Acquired−Fair Value of Liabilities Assumed)\text{Goodwill/Capital Reserve} = \text{Purchase Consideration} - (\text{Fair Value of Assets Acquired} - \text{Fair Value of Liabilities Assumed})
This formula determines the goodwill (if purchase consideration exceeds net assets acquired) or capital reserve (if net assets acquired exceed purchase consideration) arising from an amalgamation accounted for using the purchase method.

Capitalization Rate for General Borrowings (AS 16)

Topic: AS 11 to AS 29Chapter: Chapter 1
Capitalization Rate=Total Borrowing Costs on General BorrowingsWeighted Average of General Borrowings Outstanding\text{Capitalization Rate} = \frac{\text{Total Borrowing Costs on General Borrowings}}{\text{Weighted Average of General Borrowings Outstanding}}
This rate is used to determine the amount of borrowing costs to be capitalized on qualifying assets when funds are borrowed generally and used for the purpose of obtaining a qualifying asset.

Present Value of Minimum Lease Payments (PVMLP) (AS 19)

Topic: AS 11 to AS 29Chapter: Chapter 1
PVMLP=∑t=1nLease Paymentt(1+r)t\text{PVMLP} = \sum_{t=1}^{n} \frac{\text{Lease Payment}_t}{(1 + r)^t}
This formula calculates the present value of all future minimum lease payments, discounted using the interest rate implicit in the lease (or the lessee's incremental borrowing rate if the implicit rate cannot be determined). It is crucial for classifying and accounting for finance leases.

Basic Earnings Per Share (EPS) (AS 20)

Topic: AS 11 to AS 29Chapter: Chapter 1
Basic EPS=Net Profit attributable to Equity ShareholdersWeighted Average Number of Equity Shares Outstanding\text{Basic EPS} = \frac{\text{Net Profit attributable to Equity Shareholders}}{\text{Weighted Average Number of Equity Shares Outstanding}}
This formula measures the portion of a company's profit allocated to each outstanding ordinary share. It is a key indicator of a company's profitability from an equity shareholder's perspective.

Goodwill or Capital Reserve on Consolidation (AS 21)

Topic: AS 11 to AS 29Chapter: Chapter 1
Goodwill/Capital Reserve=Cost of Investment+Minority Interest (NCI) at Acquisition−Fair Value of Net Identifiable Assets Acquired\text{Goodwill/Capital Reserve} = \text{Cost of Investment} + \text{Minority Interest (NCI) at Acquisition} - \text{Fair Value of Net Identifiable Assets Acquired}
This formula calculates the goodwill (excess of consideration and NCI over net assets) or capital reserve (excess of net assets over consideration and NCI) arising from a business combination where a parent acquires control over a subsidiary.

Impairment Loss (AS 28)

Topic: AS 11 to AS 29Chapter: Chapter 1
Impairment Loss=Carrying Amount−Recoverable Amount\text{Impairment Loss} = \text{Carrying Amount} - \text{Recoverable Amount}
This formula determines the amount by which an asset's carrying amount exceeds its recoverable amount. An impairment loss is recognized when an asset's carrying amount is greater than the higher of its fair value less costs to sell and its value in use. Recoverable Amount = Max(Fair Value less Cost to Sell, Value in Use).

Exchange Difference (Monetary Item)

Topic: AS 11 to AS 29Chapter: Chapter 1
(Closing Rate−Spot/Previous Closing Rate)×Foreign Currency Amount(\text{Closing Rate} - \text{Spot/Previous Closing Rate}) \times \text{Foreign Currency Amount}
Calculates the exchange difference arising on monetary items at the reporting date or settlement date, as per AS 11. This difference is usually recognized in the profit and loss statement.

Goodwill / Capital Reserve on Amalgamation (Purchase Method)

Topic: AS 11 to AS 29Chapter: Chapter 1
Purchase Consideration−Net Assets Acquired (at Fair Value)\text{Purchase Consideration} - \text{Net Assets Acquired (at Fair Value)}
Determines the goodwill (if positive) or capital reserve (if negative) arising from an amalgamation accounted for using the purchase method, as per AS 14. Net assets acquired include identifiable assets and liabilities at their fair values.

Net Defined Benefit Liability / Asset

Topic: AS 11 to AS 29Chapter: Chapter 1
Present Value of Defined Benefit Obligation−Fair Value of Plan Assets\text{Present Value of Defined Benefit Obligation} - \text{Fair Value of Plan Assets}
Calculates the net amount recognized in the balance sheet for a defined benefit plan, as per AS 15. A positive result is a liability, a negative result is an asset.

Net Interest on Net Defined Benefit Liability / Asset

Topic: AS 11 to AS 29Chapter: Chapter 1
Opening Net Defined Benefit Liability / Asset×Discount Rate\text{Opening Net Defined Benefit Liability / Asset} \times \text{Discount Rate}
Calculates the interest component of the defined benefit cost, recognized in the profit and loss statement, as per AS 15. It reflects the change in the net defined benefit liability/asset due to the passage of time.

Borrowing Cost Capitalized (Specific Borrowing)

Topic: AS 11 to AS 29Chapter: Chapter 1
Actual Borrowing Costs Incurred−Income from Temporary Investment of Funds\text{Actual Borrowing Costs Incurred} - \text{Income from Temporary Investment of Funds}
Calculates the amount of borrowing costs eligible for capitalization for specific borrowings, as per AS 16. Income earned from temporary investment of specific borrowings pending their expenditure on a qualifying asset reduces the borrowing costs eligible for capitalization.

Borrowing Cost Capitalized (General Borrowing)

Topic: AS 11 to AS 29Chapter: Chapter 1
Average Accumulated Expenditure on Qualifying Asset×Capitalization Rate\text{Average Accumulated Expenditure on Qualifying Asset} \times \text{Capitalization Rate}
Calculates the amount of borrowing costs eligible for capitalization for general borrowings, as per AS 16. The capitalization rate is applied to the average accumulated expenditure on the qualifying asset.

Capitalization Rate (General Borrowing)

Topic: AS 11 to AS 29Chapter: Chapter 1
Total Borrowing Costs on General BorrowingsTotal General Borrowings Outstanding\frac{\text{Total Borrowing Costs on General Borrowings}}{\text{Total General Borrowings Outstanding}}
Calculates the weighted average capitalization rate used for general borrowings, as per AS 16. This rate is applied to the average accumulated expenditure on qualifying assets.

Present Value of Minimum Lease Payments (PVMLP)

Topic: AS 11 to AS 29Chapter: Chapter 1
∑t=1nLease Paymentt(1+r)t\sum_{t=1}^{n} \frac{\text{Lease Payment}_t}{(1 + r)^t}
Calculates the present value of minimum lease payments, which is used to determine the initial recognition amount of a finance lease asset and liability, as per AS 19. 'r' is the implicit interest rate in the lease or the lessee's incremental borrowing rate.

Interest Expense (Finance Lease)

Topic: AS 11 to AS 29Chapter: Chapter 1
Opening Lease Liability×Implicit Interest Rate\text{Opening Lease Liability} \times \text{Implicit Interest Rate}
Calculates the interest expense recognized in the profit and loss statement for a finance lease in a given period, as per AS 19. This is based on the outstanding lease liability at the beginning of the period.

Basic Earnings Per Share (EPS)

Topic: AS 11 to AS 29Chapter: Chapter 1
Net Profit attributable to Equity Shareholders−Preference DividendsWeighted Average Number of Equity Shares Outstanding\frac{\text{Net Profit attributable to Equity Shareholders} - \text{Preference Dividends}}{\text{Weighted Average Number of Equity Shares Outstanding}}
Calculates the basic earnings per share, representing the portion of a company's profit allocated to each outstanding share of common stock, as per AS 20.

Diluted Earnings Per Share (EPS)

Topic: AS 11 to AS 29Chapter: Chapter 1
Adjusted Net Profit attributable to Equity ShareholdersAdjusted Weighted Average Number of Equity Shares Outstanding\frac{\text{Adjusted Net Profit attributable to Equity Shareholders}}{\text{Adjusted Weighted Average Number of Equity Shares Outstanding}}
Calculates the diluted earnings per share, reflecting the potential dilution that could occur if all outstanding convertible securities were exercised, as per AS 20.

Weighted Average Number of Equity Shares

Topic: AS 11 to AS 29Chapter: Chapter 1
∑(Shares outstanding×Fraction of period)\sum (\text{Shares outstanding} \times \text{Fraction of period})
Calculates the weighted average number of equity shares outstanding during a period, adjusting for changes in share capital over time, as per AS 20.

Theoretical Ex-Rights Fair Value per Share

Topic: AS 11 to AS 29Chapter: Chapter 1
(Shares before Rights×Market Price before Rights)+(Rights Shares×Rights Issue Price)Shares before Rights+Rights Shares\frac{(\text{Shares before Rights} \times \text{Market Price before Rights}) + (\text{Rights Shares} \times \text{Rights Issue Price})}{\text{Shares before Rights} + \text{Rights Shares}}
Calculates the theoretical market price of a share after a rights issue, used to determine the adjustment factor for prior period EPS calculations, as per AS 20.

Goodwill / Capital Reserve on Consolidation

Topic: AS 11 to AS 29Chapter: Chapter 1
Cost of Investment−Parent’s Share of Net Assets of Subsidiary at Acquisition\text{Cost of Investment} - \text{Parent's Share of Net Assets of Subsidiary at Acquisition}
Determines the goodwill (if positive) or capital reserve (if negative) arising on consolidation, representing the difference between the cost of investment and the parent's share of the subsidiary's net assets at the acquisition date, as per AS 21.

Minority Interest (at Reporting Date)

Topic: AS 11 to AS 29Chapter: Chapter 1
Minority Share %×(Net Assets of Subsidiary at Reporting Date−Unrealised Profits)\text{Minority Share \%} \times (\text{Net Assets of Subsidiary at Reporting Date} - \text{Unrealised Profits})
Calculates the minority interest (non-controlling interest) in the net assets of a subsidiary at the reporting date, as per AS 21. It represents the portion of profit or loss and net assets not owned by the parent.

Current Tax Expense

Topic: AS 11 to AS 29Chapter: Chapter 1
Taxable Profit×Current Tax Rate\text{Taxable Profit} \times \text{Current Tax Rate}
Calculates the amount of income tax payable on the taxable profit for the current period, as per AS 22.

Deferred Tax Liability / Asset

Topic: AS 11 to AS 29Chapter: Chapter 1
Temporary Difference×Enacted Tax Rate\text{Temporary Difference} \times \text{Enacted Tax Rate}
Calculates the deferred tax liability or asset arising from temporary differences between the carrying amount of assets/liabilities and their tax bases, as per AS 22.

Carrying Amount of Investment in Associate (Equity Method)

Topic: AS 11 to AS 29Chapter: Chapter 1
Cost of Investment+Share of Post-Acquisition Profits−Share of Dividends Received−Share of Unrealised Profits\text{Cost of Investment} + \text{Share of Post-Acquisition Profits} - \text{Share of Dividends Received} - \text{Share of Unrealised Profits}
Calculates the carrying amount of an investment in an associate using the equity method, as per AS 23. It reflects the investor's share of the associate's net assets and profits/losses.

Amortization Expense (Intangible Asset)

Topic: AS 11 to AS 29Chapter: Chapter 1
Cost of Intangible Asset−Residual ValueUseful Life\frac{\text{Cost of Intangible Asset} - \text{Residual Value}}{\text{Useful Life}}
Calculates the periodic amortization expense for an intangible asset with a finite useful life, similar to depreciation for tangible assets, as per AS 26.

Impairment Loss

Topic: AS 11 to AS 29Chapter: Chapter 1
Carrying Amount−Recoverable Amount\text{Carrying Amount} - \text{Recoverable Amount}
Calculates the impairment loss when the carrying amount of an asset exceeds its recoverable amount, as per AS 28. The loss is recognized in the profit and loss statement.

Recoverable Amount

Topic: AS 11 to AS 29Chapter: Chapter 1
Max(Net Selling Price,Value in Use)\text{Max}(\text{Net Selling Price}, \text{Value in Use})
Determines the higher of an asset's net selling price and its value in use, which is the amount expected to be recovered from the asset, as per AS 28.

Value in Use

Topic: AS 11 to AS 29Chapter: Chapter 1
Present Value of Estimated Future Cash Flows\text{Present Value of Estimated Future Cash Flows}
Calculates the value in use of an asset by discounting its estimated future cash flows to their present value, as per AS 28.

Provision (Discounted)

Topic: AS 11 to AS 29Chapter: Chapter 1
Present Value of Expected Future Outflow\text{Present Value of Expected Future Outflow}
Calculates the amount of a provision when the effect of the time value of money is material, by discounting the expected future outflow of resources, as per AS 29.
Chapter 1 Formulas — CA Intermediate | Kartavvya