Earnings per Share: Basic & Diluted EPS, Weighted Shares, Splits & Convertibles
Time-weight share issues and buybacks, restate for bonus issues, find the profit for ordinary shareholders, apply the treasury stock and if-converted methods to options, convertible bonds and convertible preference shares, sequence them for the antidilution test and chart the EPS trend: 8 labs on one fictional company (educational, IAS 33 / ASC 260 principles).
The first lesson is free — no account needed.
About this course
An earnings per share course that calculates basic and diluted EPS for one fictional listed company, Velmora Holdings, step by step in a spreadsheet, for accounting students, CPA and ACCA candidates and financial analysts. You time-weight share issues and a buyback into the weighted average number of shares, restate both years for a bonus issue, find the profit attributable to ordinary shareholders after non-controlling interests and preference dividends, apply the treasury stock method to options and warrants and the if-converted method to convertible bonds with the after-tax interest add-back and to two convertible preference classes, rank all potential shares from most to least dilutive and stop at the first antidilutive one, and chart a five-year basic vs diluted EPS trend. The principles follow IAS 33 and ASC 260 in general terms, with no affiliation with the IASB or FASB. The first lab is free.
Lessons
- Weighted Average Shares Outstanding: Time-Weighting Issues and BuybacksFree
- Stock Splits and Bonus Issues: Retroactive Restatement Pro
- Basic EPS: Profit Attributable to Ordinary Shareholders Pro
- Diluted EPS for Options and Warrants: The Treasury Stock Method Pro
- Convertible Bonds: The If-Converted Method Pro
- Convertible Preference Shares: Dividends Back, Shares In Pro
- Antidilution Test and Sequencing: Most Dilutive First Pro
- EPS Reporting Table and the Five-Year EPS Trend Chart Pro