EPS and Public Reporting

Question 1

Formula for Basic (Diluted EPS)

Answer 1

Income available to common shareholders/ Weighted Average Common Shares Outstanding

Question 2

For interim reporting, what should be included in the effective tax rate?

Answer 2

The effective income tax rates for operations for the full year should reflect anticipated foreign tax rates, available tax planning alternatives, the effect of other anticipated tax credits, capital gains rates, and foreign tax credits.

Question 3

When are shares considered contingent?

Answer 3

Shares are considered contingent if they are issuable for no cash consideration after the occurrence of the specified condition.

Question 4

How would the numerator be calculated for Dilutive EPS for convertible bonds?

Answer 4

Income available to common shareholders (Net income) plus the after-tax interest expense that would not be incurred due to the conversion of the bonds.

Question 5

What is the due date for filing the 10-Q for large accelerated and accelerated filers?

Answer 5

The 10-Q is due 40 days of the period end.