Income Statement Presentation Of Earnings Per Share

Earnings per share eps is the portion of a company s profit allocated to each outstanding share of common stock.

Income statement presentation of earnings per share. 21 income statement presentation of earnings per share. Basic earnings per share. Earnings per share calculations. In the earnings per share eps portion of the income statement which immediately follows net income corporations have to include the amount of earnings each individual share of stock they have outstanding has generated.

The standard requires a complete set of financial statements to comprise a statement of financial position a statement of profit or loss and other comprehensive income a statement of changes in equity and a statement of cash flows. If the business is a corporation with common stock that is publicly traded it is required that the net income and discontinued operations if any be shown on the income statement on an after tax per share basis. Keeping in touch 198 acknowledgements 200. 8 1 introduction 184 8 2 scope 185 8 3 year to date calculation 185 8 4 presentation and disclosure 195.

The ifrs foundation s logo and the ifrs for smes logo the iasb logo the hexagon device eifrs ias iasb ifric ifrs ifrs for smes ifrs foundation international accounting standards international financial reporting standards niif and sic are registered trade marks of the ifrs foundation further details of which are available from the ifrs. Earnings per share serve as an indicator of a company s profitability. Here are the two main components of this portion. 9 1 introduction 196 9 2 per share measures based on alternative.

The calculation of basic eps is based on the weighted average number of ordinary shares outstanding during the period whereas diluted eps also includes dilutive potential ordinary shares such as options and convertible instruments if they meet certain criteria. Earnings measures 196 9 3 dividends per share 197. 22 earnings per share 3 57 23 income from continuing operations 52 24 discontinued operations net of tax 3 05 25 net income 26 15 372 500 1 075 000 div. In addition the guide covers the presentation and disclosures related to.

Ias 33 sets out how to calculate both basic earnings per share eps and diluted eps. Earnings per share 1 74 illustration 4 4 shows an example of a supporting schedule cross referenced as note d and detailing the selling expenses. Ias 1 was reissued in september 2007 and applies to annual periods beginning on or after 1 january 2009. 8 eps in interim financial statements 184.

Earnings per share of common stock. Presented on the face of the income statement when such presentation is relevant to an understanding of the company s financial performance.