中级会计学英文版课件：ch15 Earnings per Share.pptxVIP

Lo/Fisher, Intermediate Accounting Vol.2Chapter 1515- 1Copyright ? 2014 Pearson Canada Inc.Earnings per Share Lo/Fisher, Intermediate Accounting Vol.2LEARNING OBJECTIVESL.O. 15-1. Describe the reasons for reporting basic and diluted earnings per share.L.O. 15-2. Calculate basic earnings per share.L.O. 15-3. Differentiate between dilutive andantidilutive potential ordinary sL.O. 15-4. Calculate diluted earnings per share.15- 2Copyright ? 2014 Pearson Canada Inc. Lo/Fisher, Intermediate Accounting Vol.2A. INTRODUCTION TO BASIC AND DILUTED EARNINGS PER SHARE (L.O. 15-1)Earnings per share (EPS) - measures eachordinary share’s interest in a company’s earningEPS Frequently quoted by the financial pressUsed to: - assess performance,predict future earnings,estimate value of firm’s shares15- 3Copyright ? 2014 Pearson Canada Inc. Lo/Fisher, Intermediate Accounting Vol.2Two EPS Statistics15- 4Copyright ? 2014 Pearson Canada Inc. Basic EPS - conveys “ownership” of earnings based on weighted average number of ordinary shares actually outstanding during the period Diluted EPS – EPS if the effect of potentially dilutive securities were considered (under a hypothetical worst-case scenario)- potentially dilutive securities are securities that could lead to the issuance of additional ordinshares Lo/Fisher, Intermediate Accounting Vol.2Capital Structures and Reporting Requirements Simple Capital Structure - does not include potentially dilutive securities Complex Capital Structure - includes potentially dilutive securitiesAll publicly accountable entities report basic EPS Companies with complex structures also report diluted EPS15- 5Copyright ? 2014 Pearson Canada Inc. Lo/Fisher, Intermediate Accounting Vol.2Application to Private CompaniesASPE does not require reporting of EPS Private companies following IFRS do not report EPS unless in the process of going public15- 6Copyright ? 2014 Pearson Canada Inc. Lo/Fisher, Intermediate Accounting Vol.2CHECKPOINT CP 15-115- 7Copyright ? 2014