Earnings Per Share: Basic and Diluted EPS in Accounting

Calculating earnings per share is a fundamental competency in corporate financial reporting and intermediate accounting. This written course provides a thorough walkthrough of both simple and complex capital structures, guiding you through the mechanics of reporting accurate per-share metrics. You will build a firm grasp of essential definitions, reporting standards, and mathematical procedures required to handle both basic and potentially dilutive securities with confidence. What you'll learn: - Understand the core principles and reporting objectives of earnings per share under standard accounting frameworks - Calculate weighted-average common shares outstanding while accounting for stock dividends, stock splits, and share repurchases - Compute basic EPS for companies with preferred dividends and varying classes of shares - Apply the treasury stock method to determine the dilutive effect of stock options, warrants, and modern equity awards like restricted stock units - Implement the if-converted method for convertible bonds and convertible preferred stock - Identify and properly exclude anti-dilutive securities from complex EPS disclosures The training begins with foundational terminology and statutory requirements before advancing to structured, written calculations covering multifaceted dilution scenarios. This course is tailored for accounting students, aspiring financial analysts, and professionals preparing for professional accounting assessments who want a clear, conceptual foundation. No advanced prior experience with complex equity instruments is required. Start reading today to sharpen your financial accounting and reporting skills.