Handbooks | August 2021

 

Insight

Handbook: Earnings per share

Latest edition: Our comprehensive guide to EPS, updated to include the most recent guidance.

Regina Croucher

Regina Croucher

Partner, Dept. of Professional Practice, KPMG US

+1 816-802-5840

Nick Goodier

Nick Goodier

Senior Manager, Dept. of Professional Practice, KPMG US

+1 612-305-5517

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.

Applicability

  • 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
  • Supplemental guidance on the effects of ASU 2020-06 on certain instruments

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

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