Handbook: Earnings per share

Our updated handbook explains the principles of ASC 260 through Q&As and examples using a step-by-step approach to basic and diluted EPS calculations and providing guidance on simple and 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
• Appendix presents guidance relevant before the adoption of ASU 2020-06 (convertible debt and contracts in own entity) and ASU 2021-04 (accounting for modifications of written call options)

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
• Select ASC 260 illustrations
• EPS pre-ASU 2020-06 and/or ASU 2021-04
  

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