Handbooks  |  December 2018

KPMG Handbook: Earnings per share

Filed under: Presentation

KPMG’s Handbook explains the principles of ASC 260 through Q&As and examples. The Handbook uses a step-by-step approach to the basic and diluted EPS calculations and provides guidance on more complex instruments.


ASC 260

  • All companies that present EPS information

Relevant dates

  • Effective immediately

Key impacts

  • Explains which entities are in the scope of ASC 260
  • Presents the foundations of basic and diluted EPS
  • Clarifies when and how to apply the two-class method to calculate EPS
  • Provides in-depth discussion of EPS calculations for various instruments
  • Overall interpretive guidance for ASC 260, including illustrative examples and Q&As

Report contents

  • Scope
  • Basic EPS – The foundations
  • Diluted EPS – The foundations
  • Participating securities and the two-class method
  • Consideration of specific instruments
  • Retrospective adjustments
  • EPS in interim financial statements
  • Presentation, disclosure and other matters

Spotlight on contributors

Regina Croucher

Regina Croucher

Partner, Audit, DPP, KPMG (US)

+1 816-802-5840
Rivka Grund-Sender

Rivka Grund-Sender

Director, Audit Quality and Professional Practice, KPMG (US)

+1 212-872-3805
Michael Petry

Michael Petry

Senior Manager, Audit, KPMG (US)

+1 212-954-3524