Handbooks | August 2020



Handbook: Earnings per share

Latest edition: Our comprehensive guide to EPS, featuring a step-by-step approach to basic and diluted EPS calculations.

Regina Croucher

Regina Croucher

Partner, Dept. of Professional Practice, KPMG US

+1 816-802-5840

Rivka Grund-Sender

Rivka Grund-Sender

Director, Dept. of Professional Practice, KPMG US

+1 212-872-3805

Our updated 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.


  • All entities 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
  • High-level overview of EPS effects of ASU 2020-06

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

Related content

FASB amends convertible debt and contracts in own entity

Financial reporting impacts of coronavirus

Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.


Use our Accounting Research Online for financial reporting resources.