This
statement aims to establish the counting technique, presentation, and
disclosure of LPS which in turn will improve performance comparisons between
companies and between periods.
This
statement emphasizes the technique of determining the number of shares used as
the divisor is known as the denominator (denominator) and profit figures
not
on the determination of the profits. Although LPS has limitations due to
non-uniform accounting policies in determining profit, but with the denominator
are calculated consistently, then the quality of financial reporting can be
unreliable.
Scope
statements in IAS 56 should be applied by issuers or public companies that have
ordinary shares or potential ordinary shares. Companies that are not listed or
publicly traded company serving LPS, is required to apply this statement.
This
statement is effective for financial statements ending on or after December 31,
2000. Earlier application is encouraged. (Source Indonesian Institute of
Accountants)
