Open AccessEPS Reporting Revisited: An Evaluation Of Proposed Changes
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.v8i2.6159
Subject(s) - earnings , accounting , predictability , earnings per share , materiality (auditing) , earnings response coefficient , treasury , business , empirical evidence , econometrics , economics , law , statistics , political science , philosophy , mathematics , aesthetics , epistemology
In 1969 the Accounting Principles Board issued Opinion No. 15, Earnings Per Share, requiring firms with complex capital structures to disclose primary and fully diluted earnings per share. A recent article by Mautz and Hog the treasury stock method used in the computation of primary and fully-diluted earnings, and the three percent materiality standard. The purpose of this paper is to evaluate these proposed changes by examining empirical evidence from studies investigating conversion predictability and the information content of earnings.