RSM320H1 Chapter Notes - Chapter 17: Dividend, Capital Structure, Net Income
Document Summary
Earnings per share tells common shareholders how much of the available income is associated with the shares they own (their share of the pie) Impact of other financial instruments on their potential earnings (diluted eps) Basic eps: actual earnings and actual number of issued common shares (prorated for the time period that the shares have been outstanding) Ear(cid:374)i(cid:374)gs a(cid:374)d (cid:374)u(cid:373)(cid:271)er of (cid:272)o(cid:373)(cid:373)o(cid:374) shares adjusted for (cid:862)(cid:449)hat-if(cid:863) What would the eps be if any financial instruments that could be converted to common shares were actually converted. Under ifrs, eps must be reported as part of the income statement. Exception: non public (privately held) corporations (i. e. , eps not required under aspe) Reported for each income component as reported on the income statement. Eps relating to discontinued operations (if applicable) may be presented on face of income statement, or disclosed in notes. Where applicable, both basic eps and diluted eps reported.
