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EPS control number belongs in a reconciled numerator-and-denominator workpaper. The EPS control number is income or loss from continuing operations available to common shareholders, or the required similar line above net income. It determines whether potential common shares are dilutive for all presented per-share amounts.
Apply it
An entity has income from continuing operations but a net loss after discontinued operations. Use continuing operations to select the diluted instrument set, then apply that same set consistently to the other required EPS lines.
Review eps control number against income available to common shareholders. Reconcile eps control number to antidilution, the dated eps control number evidence, and its final presentation.
The eps control number record ties income available to common shareholders to its source date, measured amount, and antidilution effect.
Keep the boundary clear
Do not choose net income because it gives a lower diluted EPS. The control-number rule prevents different instrument sets from being selected for different statement components.
Authority
Read ASC 260-10-45-20 for the control number for antidilution.
Put the concept to work
Apply this concept
- Explain and apply eps control number within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
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Build on these ideas
- Basic earnings per share — Apply
To apply this concept: Required. This earlier step supplies an input required by the EPS workpaper.
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Use this idea next
- Antidilution — Apply
Required level here: apply. Required. This earlier step supplies an input required by the EPS workpaper.