Earnings per share (EPS)

meyer cohn
Mind Map by meyer cohn, updated more than 1 year ago
meyer cohn
Created by meyer cohn about 6 years ago
124
2

Description

Summary of EPS

Resource summary

Earnings per share (EPS)
  1. Basic earnings
    1. - P/L attributable to ordinary owners of parent. - Adj. After-tax effects of items relating to pref. shares classified as equity: 1. Non-cumulative div = if declared; 2. Cumulative div = irrespective of declaration; 3. Diff on settlement of pref. shares.
    2. Basic shares
      1. Issue = MV/FV
        1. 1. Weight current period; 2. Do not restate comparatives
          1. Mandatory convertible instruments: - incl. from date contract entered into.
        2. Issue for no value
          1. 1. Do not weight current period; 2. Restate comparatives.
            1. Rights issue
              1. At fair value - weight current period; - do not restate
                1. At less than FV - Split no. of shares into for value & bonus portions; - FOR VALUE portion : do as FV normal; - BONUS portion : Do not weight current yr; restate proportionately
            2. Combo
              1. 1. Weight for value in current period; 2. Restate comparatives proportionately for bonus portion.
            3. Diluted eps
              1. - ID potential shares; - ID if dilutive ( Determine sequence; Test against control)
                1. Adj. basic earnings; after-tax income/expense items which no longer occur due to dilutive
                  1. 1. Start with basic WANOS; 2. Adj. for all dilutive shares;
                    1. Contracts settled either in ordinary shares or cash
                      1. Option of isuer
                        1. assumed to settle in ordinary shares
                        2. Option of holder
                          1. Determine the more dilutive option
                          2. Convertible debentures
                          3. Sequence of dilution - frm most dilutive to least dilutive (each issue considered seperate of others
                          4. Headline earnings (C03/12)
                            Show full summary Hide full summary

                            Similar

                            Impairment of assets
                            meyer cohn
                            Share-based payments
                            meyer cohn
                            Revenue from contracts with customers
                            meyer cohn
                            Profit and Loss Accounts
                            Stuart Smith
                            Finance- Break even
                            cesleviciutek
                            Practice Questions
                            Elizabeth Rogers8284
                            Finance - Balance sheets
                            cesleviciutek
                            Microeconomics year 1
                            Nkolika Ezepue
                            Finance sources of Finance
                            cesleviciutek
                            Foreign exchange rates
                            meyer cohn
                            Contemporary Business
                            TimTim