BNA®, publisher of the authoritative and universally recognized Tax Management Portfolio series analyzing primarily tax issues, has released the latest addition to its Accounting Policy & Practice Series™. Portfolio 5137, Earnings Per Share, explains how to calculate, present, and disclose this key performance measure under both US and international accounting standards. This new portfolio is authored by Associate Dean/Dean of Accreditation and Administration and Professor of Accounting Ruth Ann McEwen.
All entities that issue publicly traded common stock or potential common stock, including options, warrants, convertible securities, and contingent stock agreements, are required to include information on earnings per share (EPS) in financial statements. Other entities may choose to report EPS.
Earnings Per Share explains the mechanics and nuances of calculating, disclosing, and assessing EPS. After providing essential background on the Statement of Earnings and Comprehensive Income, the Portfolio explains how to calculate basic EPS. It then explains and illustrates the adjustments that must be made in computing diluted EPS. Although the Portfolio focuses on computing and reporting EPS under domestic accounting standards, it also touches upon international aspects of the subject.
Entities are required to disclose earnings and EPS for all periods presented. The Portfolio discusses interim financial reporting and its effect on EPS.
Earnings Per Share also provides perspective on its core subject by comparing EPS to alternative representations including "core" and "proforma" earnings. The Portfolio also relates EPS to the broader subjects of earnings quality and earnings management.
Associate Dean Ruth Ann McEwen, serves as a consultant to the Financial Accounting Standards Board and has been deeply involved with its ongoing project to codify generally accepted accounting principles. She has authored or co-authored more than 20 articles dealing with ethics and the usefulness of accounting information to the investment community, and has presented papers on financial reporting and the usefulness of accounting information to the Financial Accounting Standards Board and the Governmental Accounting Standards Board.
Dean McEwen has taught Financial Accounting at the Intermediate and Doctoral levels for more than 20 years, and serves as Associate Dean of Accreditation and Administration and Professor of Accounting for the Sawyer Business School at Suffolk University.
BNA is the foremost publisher of print and electronic news, analysis, and reference products, including the Accounting Policy & Practice Series. BNA publications intensely cover legal and regulatory developments for professionals in business and government. BNA is the oldest wholly employee-owned company in the United States, and produces more than 350 news and information services — including Daily Report for Executives and Daily Tax Report — widely respected for comprehensive and objective reporting and analysis.
For more information about the Accounting Policy & Practice Series, call (800) 372-1033.