Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 11ASC 260 EARNINGS PER SHARE

PERSPECTIVE AND ISSUES

   Subtopic

   Scope and Scope Exceptions

   Overview

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   Simple Capital Structure

   Complex Capital Structure

   Examples of EPS Computation—Complex Capital Structure

   Participating Securities and the Two-Class Method

   Effect of Contracts That May Be Settled in Stock or Cash on the Computation of DEPS

   Inclusions/Exclusions from Computation of DEPS

   The Effect of Contingently Convertible Instruments on DEPS

   Consolidated DEPS

   Partially Paid Shares

   Effect of Certain Derivatives on EPS Computations

   Effect on EPS of Redemption or Induced Conversion of Preferred Stock

   EPS Impact of Tax Effect of Dividends Paid on Unallocated ESOP Shares

   Earnings Per Share Implications of ASC 718

   Presentation

   Other Disclosure Requirements

COMPREHENSIVE EXAMPLE

   Diluted EPS (DEPS)

   Note X: Earnings per Share (Illustrative Disclosure Based on Facts from the Example)

PERSPECTIVE AND ISSUES

Subtopic

ASC 260, Earnings per Share, consist of one subtopic:

• ASC 260-10, Overall, that provides the guidance for computation, presentation, and disclosure for earnings per share (EPS) for entities with publicly held common stock or potential common stock.

The subtopic also includes master limited partnership subsections that clarify the application to master limited partnership of the Other Presentation Matters subsection.

Scope and Scope Exceptions

ASC 260 applies ...