Earning Per Share Flashcards

1
Q

How do you treat the stock split for calculating the WASCO?

A

If treat stock splits as if they are outstanding throughout the year.

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2
Q

How do we trat stock dividend for calculating the WASCO?

A

We treat stock dividend as if they are outstanding throughout the year.

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3
Q

How do we treat stock split and stock dividend for calculating the WASCO if they are issued after the year end but before the issuance of Balance sheet?

A

They would be added to the year of reporting even though they are issued after the year-end. Suppose the FS issuance date is March 1 and these events happened on Feb 25, they will be added to the previous yar

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4
Q

Do we add the share issue on Dec 31 or next year before the FS issuance in calculating the WASCO

A

No. Only stock splits and stock dividends are added.

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5
Q

If year 2 and year 3 are presented together, and there is a stock split on April 30, Year 3, what impact would it have on the WASCO of year 2

A

Since year 2 FS are presented along with year 3, you have to treat this stock split as it happened on Jan 1 Year 2. So it would have an impact on year 2 WASCO. It would have impact on earliest year presented. (SPLIT ADJUSTED FOR EVERY YEAR PRESENTED)

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