RSM221H1 Chapter Notes - Chapter 17: Capital Structure, Stock Split, Income Statement
Document Summary
Eps= (cid:1866)(cid:1855)(cid:1867)(cid:1865)(cid:1857) (cid:1853)(cid:1874)(cid:1853)(cid:1864)(cid:1853)(cid:1854)(cid:1857) (cid:1872)(cid:1867) (cid:1855)(cid:1867)(cid:1865)(cid:1865)(cid:1867)(cid:1866) (cid:1871) (cid:1853)(cid:1870)(cid:1857) (cid:1867)(cid:1864)(cid:1856)(cid:1857)(cid:1870)(cid:1871) (cid:1875)(cid:1857)(cid:1859) (cid:1872)(cid:1857)(cid:1856) (cid:1853)(cid:1874)(cid:1857)(cid:1870)(cid:1853)(cid:1859)(cid:1857) (cid:1866)(cid:1873)(cid:1865)(cid:1854)(cid:1857)(cid:1870) (cid:1867)(cid:1858) (cid:1855)(cid:1867)(cid:1865)(cid:1865)(cid:1867)(cid:1866) (cid:1871) (cid:1853)(cid:1870)(cid:1857)(cid:1871) Basic eps: look at actual earnings and the actual number of common shares outstanding. Diluted eps: takes into account the possibility that financial instruments such as convertible debt and options might have a negative impact on existing shareholder returns and the shares" value. Aspe does not require eps calculations or disclosures in the financial statements. When the income statement presents discontinued operations, earnings per share should be disclosed for income from continuing operations, earnings per share should be disclosed for income from continuing operations, discontinued operations, and net income. Ifrs requires the following: eps amounts must be shown for all periods that are presented. If there has been a stock dividend or stock split, all per share amounts of prior period earnings should be restated using the new number of outstanding shares.
