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Accounting for Earnings per Share - v12 (Course Id 1751)

Updated / QAS / Registry
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Author : Jae K. Shim, Ph.D., CPA
Course Length : Pages: 32 ||| Review Questions: 22 ||| Final Exam Questions: 15
CPE Credits : 3.0
IRS Credits : 0
Price : $26.95
Passing Score : 70%
Course Type: NASBA QAS - Text - Technical - NASBA Registry
Primary Subject-Field Of Study:

Accounting - Accounting for Course Id 1751

Description :

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, this online accounting continuing education includes insights from the Securities and Exchange Commission staff.  

Usage Rank : 0
Release : 2022
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 06-Jan-2023
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - Text - Technical - NASBA Registry - 1751

Keywords : Accounting, Accounting, Earnings, per, Share, v12, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

After completing this course, you should be able to:
    1. Identify the difference between two different capital structures—simple and complex
    2. Recognize how to compute basic earnings per share in a simple capital structure
    3. Recognize how to compute diluted earnings per share in a complex capital structure
    4. Identify the presentation and disclosure requirements of EPS data
Course Contents :

Chapter 1 - Accounting for Earnings per Share

I. Overview of ASC 260

Basic Principles


Subsequent Amendments

II. Basic EPS

General Rules

Example 1: Basic EPS Calculation

Step 1. Determine the Numerator

Cumulative vs. Noncumulative Preferred Dividends

Example 2: Numerator Adjustment -  Cumulative Preferred Dividends

Example 3: Numerator Adjustment -  Noncumulative Preferred Dividends

Changes in the Carrying Amount of Redeemable Preferred Stock

Redemption or Induced Conversion of Preferred Stock

Example 4: Numerator Adjustment -  Redeeming Preferred Stocks with Beneficial Conversion Feature

Redeemable Noncontrolling Interests

Equity-Classified Instruments with a Down Round Feature

Example 5: Freestanding Instruments with Down Round Features

Step 2. Determine the Denominator

Example 6: Weighted-Average Number of Shares Outstanding

Contingently Issuable Shares

Example 7: A Continued Service Requirement

Comprehensive Illustrations: Basic EPS

Review Questions - Section 1

II. Diluted EPS

General Rules

Distinguish between Dilutive and Antidilutive Security

Example 8: Dilutive or Antidilutive

Recognize Potential Common Shares

Contingently Issuable Shares

Example 9: Contingently Issuable Common Shares

Options and Warrants

Example 10: Treasury Stock Method

Written Put Options

Example 11: Reverse Treasury Stock Method

Convertible Securities

Example 12: If-Converted Method

Comprehensive Illustration 2: Diluted EPS

Review Questions - Section 2

III. Other Matters

Application of the Two-Class Method

Stock Dividends and Stock Splits

Example 13: Stock Dividends and Stock Splits

Presentation and Disclosures


Example 14: Presentation -  Reporting Discontinued Operations


Example 15: The Reconciliation of the Numerators and Denominators for Basic and Diluted EPS

Interim Financial Reports

EPS Computations in an IPO

The Limitations of EPS

Failure to Reflect the Cost of Equity

Pro Forma EPS Confusion

Real-World Case: Inflated Quarterly EPS

Comprehensive Illustration 3: Two-Class Method of Computing Basic EPS

Review Questions - Section 3


CPE Accounting Course: https://www.cpethink.com/accounting-cpa-courses
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