Earnings Per Share参考.ppt

Disclosure (a) the amounts used as numerators, and a reconciliation of those amounts; (b) the weighted average number of ordinary shares used as denominator, and a reconciliation of the denominators between them; (c) instruments that could potentially dilute basic earnings per share in future, but have not been included in the calculation of earnings per diluted share because they have effects anti-dilusive in the period or periods reported; * Continued (d) a description of transactions with shares or potential ordinary shares, which take place after the reporting date that would have significantly changed the number of ordinary shares or ordinary shares potential movement at the end of the period if those transactions had taken place before the end of the period for which information is given. * Usefulness of EPS Compared to the reported profits, EPS is the more accurate indication of profitability because of considering the companies’ size (the number of shares outstanding) and individual investments. Used to compute the major stock market indicator of performance, the PE ratio. Diluted EPS A warning signal. Alert the equity shareholders that their investment income may be reduced if the potential ordinary shares are converted or exercised. * Limitation of EPS Ignore inflation Less predictive value because it is a measure of past performance. Less comparability among companies Measure profitability, which is only one aspect of overall performance. * Exercises 2b Dec01 2b Jun02 2c Dec05 2c Dec07 5b Dec02 5b Jun03 5b Jun06 5 Dec09 4 Jun11 * IAS33 Earnings Per Share Syllabus C11g EPS = ① / ② ① Net profit or loss attributable to ordinary shareholders Net profit or loss（excluding income tax and non-controlling interest）X Less：irredeemable preferred share dividends （X） X ② Weighted average number of or