If basic and diluted earnings per share are equal, dual presentation can be accomplished in one line on the income statement.Īn entity that reports a discontinued operation shall disclose the basic and diluted amounts per share for the discontinued operation either on the face of the income statement or in the notes.Īn entity shall present basic and diluted earnings per share, even if the amounts are negative (ie a loss per share).Īn entity shall disclose the following: (a) If diluted earnings per share is reported for at least one period, it shall be reported for all periods presented, even if it equals basic earnings per share. An entity shall present basic and diluted earnings per share with equal prominence for all periods presented.Įarnings per share is presented for every period for which an income statement is presented. In addition, basic and diluted earnings per share of all periods presented shall be adjusted for the effects of errors and adjustments resulting from changes in accounting policies accounted for retrospectively.Īn entity does not restate diluted earnings per share of any prior period presented for changes in the assumptions used in earnings per share calculations or for the conversion of potential ordinary shares into ordinary shares.Īn entity shall present on the face of the income statement basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity holders of the parent entity and for profit or loss attributable to the ordinary equity holders of the parent entity for the period for each class of ordinary shares that has a different right to share in profit for the period. The fact that per share calculations reflect such changes in the number of shares shall be disclosed.
![earnings per share formula earnings per share formula](https://stockanalysis.com/img/term/pe-price-to-earnings-ratio.png)
If these changes occur after the balance sheet date but before the financial statements are authorised for issue, the per share calculations for those and any prior period financial statements presented shall be based on the new number of shares.
![earnings per share formula earnings per share formula](https://www.myaccountingcourse.com/financial-ratios/images/earnings-per-share.jpg)
If the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalisation, bonus issue or share split, or decreases as a result of a reverse share split, the calculation of basic and diluted earnings per share for all periods presented shall be adjusted retrospectively.