Handbooks | December 2019

KPMG Handbook: Earnings per share

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

  • Q&As and examples that answer the questions we are encountering in practice
  • Uses a step-by-step approach through the calculations of basic and diluted EPS
  • Provides in-depth discussion of EPS calculations for various instruments
  • Includes new example calculations for master limited partnerships

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, Dept. of Professional Practice, KPMG US

Rivka Grund-Sender

Rivka Grund-Sender

Director, Dept. of Professional Practice, KPMG US

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