Restatement of prior Basic E.P.S
For comparison purposes in a case where free shares were issued in the current year. The prior ye
E.P.S MUST be restated mainly for comparison purposes.
Restated Basic E.P.S of Prior year=
Profit att. To ordinary shares of prior year
WANOS of prior yr+free shares issued in the current year
WANOS=Weighted Average Number of ordinary shares
, Complex Capital structures-Diluted
E.P.S
=Profit att. To ordinary shareholders from continued operations+Increamental earnings
WANOS from continued operations+Increamental Ordinary shares
, Complex Capital Structure
The capital structure of many companies inclu
convertible securities, stock options and
warrants.
Since conversion of these securities into comm
stock may decrease EPS, these securities are
referred to as potentially dilutive securities.
Earnings Per Share
, Complex Capital Structure (contd.)
These potentially dilutive securities are also referred to as
common stock equivalents (CSE).
A CSE is a security that is not a common stock, but contains
provision enabling its holders to acquire common stock at
predetermined terms which, at issuance, makes it, in
substance, equivalent to a common stock.
Earnings Per Share
For comparison purposes in a case where free shares were issued in the current year. The prior ye
E.P.S MUST be restated mainly for comparison purposes.
Restated Basic E.P.S of Prior year=
Profit att. To ordinary shares of prior year
WANOS of prior yr+free shares issued in the current year
WANOS=Weighted Average Number of ordinary shares
, Complex Capital structures-Diluted
E.P.S
=Profit att. To ordinary shareholders from continued operations+Increamental earnings
WANOS from continued operations+Increamental Ordinary shares
, Complex Capital Structure
The capital structure of many companies inclu
convertible securities, stock options and
warrants.
Since conversion of these securities into comm
stock may decrease EPS, these securities are
referred to as potentially dilutive securities.
Earnings Per Share
, Complex Capital Structure (contd.)
These potentially dilutive securities are also referred to as
common stock equivalents (CSE).
A CSE is a security that is not a common stock, but contains
provision enabling its holders to acquire common stock at
predetermined terms which, at issuance, makes it, in
substance, equivalent to a common stock.
Earnings Per Share
