Question

Which one of the following is required in the notes to the financial statement for EPS?

Select one:

a. detailed calculations of weighted average shares outstanding for the period

b. all stockholder transactions that occurred after the close of the year

c. adjustments to the denominator for preferred dividends

d. a discussion of antidilutive securities that were excluded from the computation of diluted EPS

Answer 1

AN ENTERPRISE SHOULD DISCLOSE THE FOLLOWING

1) WHERE THE STATEMENT OF PROFIT AND LOSS INCLUDES ORDINARY ITEMS BASIC AND DILUTED EPS COMPUTED ON THE BASIS OF EARNINGS EXCLUDING EXTRAORDINARY ITEMS

2) THE AMOUNTS USED AS THE NUMERATORS IN CALCULATING BASIC AND DILLUTED EPS AND A RECONCILIATION OF THOSE AMOUNTS TO NET PROFIT OR LOSS FOR THE PERIOD

3) THE WEIGHTED AVERAGE NUMBER OF EQUITY SHARES USED AS DENOMINATOR IN CALCULATING BASIC AND DILLUTED EPS AND A RECONCILIATION OF THESE DENOMINATORS TO EACH OTHER AND

4) THE NOMINAL VALUE OF SHARES ALONG WITH THE EPS FIGURES

SO OPTION A DETAINED CALCULATION OF THE WIGHTED AVERAGE SHARES OF THE OUTSTANDING FOR THE PERIOD IS CORRECT