Question:
Define earnings per share (EPS). For which income statement items must EPS be disclosed?
Answer:
Earnings per share (EPS) is the amount of income achieved during a period for each share of common
stock outstanding. If there are different components of income reported below continuing operations,
their effects on earnings per share must be disclosed. If a period contains discontinued operations and
extraordinary items, EPS data must be reported separately for income from continuing operations and net
income. Per share amounts for discontinued operations and extraordinary items would be disclosed on
the face of the income statement.
Define earnings per share (EPS). For which income statement items must EPS be disclosed?
Answer:
Earnings per share (EPS) is the amount of income achieved during a period for each share of common
stock outstanding. If there are different components of income reported below continuing operations,
their effects on earnings per share must be disclosed. If a period contains discontinued operations and
extraordinary items, EPS data must be reported separately for income from continuing operations and net
income. Per share amounts for discontinued operations and extraordinary items would be disclosed on
the face of the income statement.
