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Accounting for Earnings per Share (EPS)
IFRS versus GAAP
Listed below are some of the major differences between International Financial Reporting Standards (IFRS) and U.S. GAAP in accounting for earnings per share (EPS). This material is excerpted from Wiley IFRS 2008: Interpretation and Application of International Financial Reporting Standards.
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U.S. GAAP: Accounting for Earnings per Share |
IFRS: Accounting for Earnings per Share |
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Very similar to IFRS, but with more detailed guidance on calculations |
Similar to US GAAP. Calculation of year-to-date EPS (versus previously reported interim date) varies from US GAAP
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Report basic and diluted EPS on continuing operations, discontinued operations, extraordinary items, cumulative effect of change in accounting and net income
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Report basic and diluted EPS on continuing operations and net income |
| For interim reporting, average the interim periods’ incremental shares to compute EPS |
For interim reporting, use treasury stock method on year-to-date results, unlike US GAAP approach
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Proposed changes would converge with IFRS
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Contact IFRS international accounting expert Dr. Barry Epstein, CPA for more information. Learn more about Dr. Epstein at www.ifrsaccountant.com. He can be reached at mailto:bepstein@rnco.com or 312-464-3520.
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