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Earnings per share (eps). Accounting for basic earnings per share vs diluted when multiple convertible securities are involved, (1) does no. Basic eps = net income ( preferred stock dividends) / weighted average common shares outstanding.
It sums up theory, but if you need some examples, then they a. Consolidated earnings per share formulas for subsidiary and parent companies, basic (beps) diluted (deps), general. Accounting for basic earings per share versus diluted share, the dilutive security used in example is a convertible bond, (a) earnings.
Free lectures for the acca financial reporting (fr) exam to benefit from this lecture, visit ope. Diluted has the same numerator but adds additional. In this video on basic eps, we are going to discuss eps detail.
This starts with a short theory lecture and then works series of problems you. Eps is a financial ratio, which divides net earnings available to common shareholders by the total outstanding shares over certain period of time.