Summary Business Accounting

Question:

The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally

accepted accounting principles.

Required:

1. Obtain the relevant authoritative literature on earnings per share using the FASB’s Codification

Research

System at the FASB website ( www.fasb.org ). Identify the Codification topic number that provides the

accounting for earnings per share.

2. What is the specific citation that describes the additional information for earnings per share that must

be included in the notes to the financial statements?

3. Describe the required disclosures



Answer:



Requirement 1

FASB ASC 260: “Earnings per Share.”

Requirement 2

The specific citation that describes the additional information for earnings per share that must be

included in the notes to the financial statements is FASB ASC 260–10–50–1: “Earnings per Share–

Overall–Disclosure.”

Requirement 3

For each period for which an income statement is presented, an entity discloses all of the following:



a. A reconciliation of the numerators and the denominators of the basic and diluted per-share

computations for income from continuing operations. The reconciliation includes the individual

income and share amount effects of all securities that affect earnings per share (EPS). Example 2