TITLE

The Two-Class Stock Method for Calculating Earnings per Share

AUTHOR(S)
Rashty, Josef
PUB. DATE
August 2012
SOURCE
CPA Journal;Aug2012, Vol. 82 Issue 8, p26
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article explains the application of the two-class method in the calculation of basic and diluted earnings per share (EPS) for stock compensation awards that are considered participating securities under Accounting Standards Codification (ASC) 260. The two-class method treats participating securities as having rights to earnings that have been available only to common shareholders. A participating security refers to a security that may participate in the distribution of earnings.
ACCESSION #
87368309

 

Related Articles

  • THE SPIRIT OF A STANDARD. Wild, Ken; Goodhead, Clive // Accountancy;Aug1993, Vol. 112 Issue 1200, p68 

    This article deals with disposals of assets, additional earnings per share figures and hints for small companies in relation to the implementation of FRS 3 standard for accounting in Great Britain. An initially relatively low profile change in the FRS's requirement that the profit or loss on the...

  • Is Openness Penalized? Stock Returns around Earnings Warnings. Tucker, Jennifer W. // Accounting Review;Jul2007, Vol. 82 Issue 4, p1055 

    Prior research finds that firms warning investors of an earnings shortfall experience lower returns than non-warning firms with similar risks and earnings news. Openness thus appears to be penalized by investors. Yet, this finding may be due to a self-selection bias that occurs when firms with a...

  • Which acquirers gain more, single or multiple? Recent evidence from the USA market. Ismail, Ahmad // Global Finance Journal;Aug2008, Vol. 19 Issue 1, p72 

    Abstract: This study considers shareholder returns using 16,221 US takeovers between 1985 and 2004. It finds that single acquirers out-perform multiple acquirers by 1.66%, and that the gap widens to 5% in equity exchange offers. In contrast to multiple acquirers, single acquirers generate higher...

  • LARGEST U.S. CORPORATIONS.  // Fortune International (Europe);4/18/2005, Vol. 151 Issue 7, pF1 

    Presents a table of the largest corporations in the United States. Information about the corporations' revenues, profits, assets, stockholders' equity, market value, earnings per share, and total return to investors; Inclusion of corporations such as Wal-Mart Stores, Exxon Mobil, General Motors,...

  • LARGEST U.S. CORPORATIONS.  // Fortune;4/18/2005, Vol. 151 Issue 8, pF1 

    Presents a table of the largest corporations in the United States. Information about the corporations' revenues, profits, assets, stockholders' equity, market value, earnings per share, and total return to investors; Inclusion of corporations such as Wal-Mart Stores, Exxon Mobil, General Motors,...

  • Industry Audit. Trombetta, Bill // Pharmaceutical Executive;Sep2005, Vol. 25 Issue 9, p68 

    Presents the ranking of the top ten sixteen publicly traded pharmaceutical companies in the U.S. Revenue from the 2003 global sales of prescription drugs and vaccines; Earnings per share; Assessment of the gross margin; Escalation of the productivity of three major representatives, Amgen,...

  • An Empirical Study to test the Explanatory Power of the Factor Portfolios. Amit, B. Mirji // Advances in Management;Feb2013, Vol. 6 Issue 2, p15 

    The study tests whether growth in cash earnings per share (CEPS) for a portfolio is explained by similar growth in factor portfolios like market, SMB and HML as envisaged in the Fama and French three-factor return model for NSE listed companies during 1996- 2010. The results show that growth in...

  • Popular's Net Income Declines as Mortgage Securities Trading Falls.  // National Mortgage News;7/24/2006, Vol. 30 Issue 41, p18 

    The article reports on the net income of Popular Inc., a Puerto Rico-based a banking and mortgage firm for the second quarter in the U.S. The banking and mortgage firm reveals that the company's net income is decreasing as well as its earnings per share. However, there is a non-interest income...

  • Glanbia Share Earnings Boost.  // Hospitality Ireland;Feb2009, Issue 55, p77 

    The article reports on the 17% growth in adjusted earnings per share of Glanbia in 2008. Food Ingredients Ireland was the only Glanbia business that reportedly failed to perform in line with or better than the expectations. The financial condition is predicted by the company to pose more...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics