19.0 Earnings per Share

Learning Objectives

After completing this chapter, you should be able to:

  1. Describe earnings per share (EPS) and their role in accounting and business.
  2. Describe basic and diluted earnings per share in terms of an overview.
    1. Calculate basic earnings per share.
    2. Calculate diluted earnings per share and report the final results.
  3. Describe the issues that can affect both basic and diluted earnings per share.
  4. Calculate basic and diluted earnings per share in terms of a comprehensive illustration.
  5. Identify and explain how earnings per share and price-earnings ratio are used to analyze company performance from an investor perspective.
  6. Explain the difference between ASPE and IFRS regarding earnings per share.

Introduction

This chapter will focus on the basics of calculating, reporting, and interpreting earnings per share (EPS) as an important shareholder and potential investor evaluation metric. The chapter will discuss two primary types of EPS, namely basic and diluted earnings per share.

Chapter Organization

Earnings per Share (EPS) chapter outline

License

Icon for the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

Intermediate Financial Accounting 2 Copyright © 2022 by Michael Van Roestel is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

Share This Book