Accounting for Earnings Per Share (3 hrs)

Course No. 7019
Format: Online pdf (77 pages). Printed book available.
Instructional Delivery Method: QAS Self-Study
Prerequisites: None
Advance Preparation:None
Level: Intermediate
CPE Credit: 3 hrs.
Field of Study: Accounting: Technical
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: August 2026

After completing this course, you should be able to:

1. Identify EPS applicability and factors affecting EPS
2. Identify the components of the basic and diluted EPS formula
3. Recognize the impact of contingently issuable shares and preferred shares on basic EPS
4. Recognize the impact of convertible securities and stock options on diluted EPS
5. Identify advanced EPS methods, such as restatement and the two-class method

Course Contents

Part I. Overview of Earnings Per Share
Standards and Practices
Guidance and Scope
Basic EPS vs. Diluted EPS
US GAAP vs. IFRS
Application of Earnings Per Share
Stock Valuation
Factors and Limits
SEC EPS Initiative
Recent Accounting Updates

Part II. Basic Earnings Per Share
General Rules
Determine the Numerator
Cumulative vs. Noncumulative Preferred Dividends
Redemption of Preferred Stock
Effect of Redeemable Securities
Redeemable Noncontrolling Interests
Equity-Classified Instruments with a Down Round Feature
Determine the Denominator
Contingently Issuable Shares
Comprehensive Illustration 1: Basic EPS

Part III. Diluted Earnings Per Share
General Rules
Distinguish between Dilutive and Antidilutive Security
Recognize Potential Common Shares
Contingently Issuable Shares
Options and Warrants
Written Put Options
Convertible Securities
Comprehensive Illustration 2: Diluted EPS

Part IV. Special Topics
Two-Class Method
Presentation and Disclosure
Presentation
Disclosure
Restatement of EPS Data
Stock Dividends or Stock Splits
Rights Issues
Prior-Period Adjustments
Pro Forma EPS Presentation
EPS Computations in an IPO