Earnings Per Share (F8:M1)

Question 1

T or F, contingent shares (that are dilutive) are included in the calculation of BEPS if all conditions for issuance are met.

Answer 1

T

Question 2

T or F, each potentially dilutive security is considered separately for its dilutive effect.

Answer 2

T

Question 3

if a stock split occurs in a subsequent year, does anything have to be done to the EPS data of the prior year?

Answer 3

yes, it must be adjusted for the stock split when comparative FS are presented

Question 4

if an entity reports a discounted operation, where must the attributable EPS data be presented in the FS?

Answer 4

either on the face of the IS or in the notes to the FS

Question 5

when calculating diluted EPS that involve options/warrants, what is the formula to find additional shares outstanding?

Answer 5

of shares - (# of shares x exercise price / avg market price)