Full disclosure: Earnings per share (EPS)

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on the presentation and disclosure requirements for earnings per share. John Horan and Jay Seliber from our National Office are joining us again to share helpful insights and key reminders with our host, Heather Horn. 

Topics include:

• 1:18 - The basics. Jay and John set the stage for today’s discussion with a refresher on the type of entities that are required to calculate EPS and the presentation and disclosure requirements for basic and diluted EPS. 
• 8:41 - Basic EPS. We break down how to calculate basic EPS, potential adjustments to the numerator and denominator, and how to calculate weighted average shares outstanding. 
• 19:04 - Diluted EPS and convertible instruments. Jay and John discuss how to calculate diluted EPS and the various methods used. 
• 28:30 - Potential common shares. Our guests explain what potential common stock share instruments are anti-dilutive and how to consider them in the EPS calculation. 
• 32:09 - Quarterly versus annual EPS. Jay gives us a refresher on how EPS is presented on a quarterly and annual (or year-to-date) basis. 
• 36:21 - Wrap up. Our guests give us their final remarks and key takeaways. 

Want to learn more? Read:

• Chapter 7: Earnings per share of our Financial statement presentation guide
• Section 6.6 of our Carve-out financial statements guide
• Sections 2.6.5.3, 2.10.5 and 6.4.2.2 of our Business combinations and noncontrolling interests guide
• Our In depth: Domestic SPAC mergers - financial reporting and accounting considerations

And listen to our podcasts, Got EPS questions? We've got answers and Earnings per share: 5 things you need to know.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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