Per-share effect of an accounting change or error

If a correction reduces Year 1 income by $90,000 after tax, Year 1's per-share effect uses Year 1 weighted-average shares and Year 1 diluted-security analysis. Current-year shares cannot be substituted. A correction can also change the continuing-operations control number and therefore which potential common shares are dilutive.

The EPS schedule stores each corrected numerator component, preferred dividend, weighted-average denominator, potential-share sequence, and rounding rule. It then ties the displayed per-share adjustment to the corrected statement rather than dividing one cumulative retained-earnings amount by one share count.

Recompute each displayed period

ASC 250-10-50-1 requires disclosure of affected per-share amounts for a change in principle when applicable. Error-correction disclosures also identify the affected periods and amounts under ASC 250-10-50-7.

ASC 260-10-50-1 requires a reconciliation of basic and diluted EPS numerators and denominators for each presented period. Use each period's corrected numerator and its own weighted-average share schedule. For example, a $30,000 after-tax Year 1 correction with 300,000 Year 1 weighted-average shares changes basic EPS by $0.10. A later stock split may require retrospective denominator treatment under Topic 260, but current-period shares are not a general substitute for the original schedule.