The correct answer is: The extent to which earnings are distributed on shares is irrelevant; The taxation charge deducted should take account of movements on the deferred tax account.

The actual dividend paid to shareholders is irrelevant. It is the earnings generated by the company in the period per share that is important.

The taxation charge that reduces the earnings element of the calculation should take account of movements on the deferred tax account.

Dividends for cumulative preference shares should be deducted in calculating EPS whether paid or not.

Both basic EPS and diluted EPS should always be disclosed.