Accounting for Earnings Per Share ON DEMAND

Overview

Earnings per share (EPS) is a popular and useful measure of a company’s profit performance. Companies with publicly held common stock or potential common stock must disclose their EPS information. EPS tells you how much profit (or loss) each share of common stock has earned after adjustments for potential dilution from options, warrants, and convertible securities are factored in. This course covers the computation, reporting, presentation, and disclosure requirements associated with EPS as stipulated in ASC 260 Earnings Per Share. It includes excerpts from and references to ASC 260, and interpretive guidance. It also provides examples to illustrate the application. Finally, it includes insights from the Securities and Exchange Commission staff.

Highlights

Overview of ASC 260. Basic Principles. General Rules. Basic EPS. Distinguish between Dilutive and Antidilutive Security. Application of the Two-Class method. Dividends and Stock splits. Interim Financial Reports. Limitations of EPS.

Prerequisites

None.

Designed For

CPAs.

Objectives

Identify the difference between two different capital structures-simple and complex. Recognize how to compute basic earnings per share in a simple capital structure. Recognize how to compute diluted earnings per share in a complex capital structure. Identify the presentation and disclosure requirements of EPS data.

Preparation

None.

Notice

None.