EARNINGS PER SHARE (EPS) Flashcards
__________________ is the amount
attributable to every ordinary share
outstanding during the period.
Earnings per share
Earnings per share:
The corporation’s net profit ________ by the
number of ordinary shares it has outstanding
divided
_______________ are required to present
earnings per share.
Public entities
Nonpublic entities are ________________ but are
encouraged to present earnings per share
not required
An entity that reports a discontinued
operation shall ________ the basic and
diluted amounts per share for the
discontinued operation either on the face
of the income statement or in the notes
to the statements.
disclose
When the entity presents both consolidated
and separate: present only in the
_____________________ statements.
consolidated
If the entity chooses to disclose in separate
financial statements, present in the face of
the separate income statement ____________________
the earnings per share in the consolidated financial statement.
Do not present
Uses of Earnings per Share:
It is a determinant of the ______________ of
ordinary share, thus indicating the
attractiveness of ordinary share as an
investmen
market price
Uses of Earnings per Share:
It is “measure of _____________” of
management in conducting operations
performance
Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instrument
Is a financial instrument or other contract that may entitle the holder to ordinary shares.
Potential ordinary share
Is any contract that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial instrument
Financial instruments that give the holder the right to purchase ordinary shares.
Warrants or options
Preference share is cumulative – preference dividend is
_____ to current year only whether declared on not.
equal
Preference share is noncumulative – preference
dividend is equal to current year only is deducted only if
there is a ____________ declaration.
dividend
If there is significant changes in the ordinary share
capital during the year, the _______________________________
of ordinary shares outstanding during the period should
be used as denominator.
weighted average number
Shares are usually included in the weighted number of
shares from the date of consideration is ______________,
which is usually the date of issue.
receivable
______________ shares in exchange for cash are included
when cash is receivable.
Ordinary
Ordinary shares issued as a result of the conversion
of debt instrument to ordinary shares are included
from the date that interest ceases to _________.
accrue
Ordinary shares that will be issued upon conversion
of a mandatory convertible instrument are ____________
in the calculation of basic earnings per share from the
date the contract is entered into.
included
Under IFRS, subscribed ordinary shares or partly
paid shares are included in EPS to the extent that
they are entitled to participate in dividends.
‒ Under the Philippine jurisdiction, subscribed shares are
entitled to ____________________in dividends.
participate fully
Ordinary shares are issued to existing
shareholders for _______________________.
no consideration
Number of ordinary shares is__________ without
increase in resources.
increased
Bonus issue =
share dividend
The number of ordinary share outstanding is
adjusted for the proportionate change in the number
of ordinary shares outstanding as if the bonus issue
has occurred at the beginning of the ____________period
presented.
earliest
The market value of the share right-on is
actually the ______________of the share
immediately prior to the exercise of rights.
market value
Theoretical market value of the share ex-right is _______ to the total market value of shares outstanding plus the proceeds from theexercise of rights divided by the number of shares outstanding after the exercise of rights.
equal
