Open AccessEarnings Per Share Reporting: A Movement Toward International Harmonization
Author(s) -
Scott I. Jerris
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v14i2.5711
Subject(s) - accounting , harmonization , earnings per share , earnings , business , financial accounting , share price , annual report , financial ratio , accrual , accounting standard , finance , accounting information system , stock exchange , physics , acoustics
Earnings per share (EPS) is one of the most widely quoted financial measures used in assessing firm performance. Due to the use of the price-earnings ratio in financial analysis, some countries have established a standard for the computation of EPS measures. This paper compares, contrasts and illustrates current EPS reporting practices for two countries with actual pronouncements: the United States, and the United Kingdom. These two countries were specifically chosen because they represent how current EPS reporting practices can differ on a number of dimensions. In addition, this paper discusses the exposure draft of the Financial Accounting Standards Board (FASB) as compared to that of the International Accounting Standards Committee (IASC), based on a joint project to harmonize the reporting of EPS measures. Final passage of the exposure drafts is expected in mid-1997.