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EPS numerator and denominator reconciliation belongs in a reconciled numerator-and-denominator workpaper. The EPS reconciliation bridges basic to diluted numerator and denominator for each presented period. Show every income adjustment, incremental share amount, and per-share result, then list material antidilutive securities excluded from the computation.
Apply it
A schedule begins with $8,000,000 and 2,000,000 shares. Convertible debt adds $150,000 and 100,000 shares; options add no numerator and 50,000 shares. Diluted totals are $8,150,000 and 2,150,000 shares before rounding EPS.
Review eps numerator and denominator reconciliation against basic earnings per share. Reconcile eps numerator and denominator reconciliation to diluted earnings per share, the dated eps numerator and denominator reconciliation evidence, and its final presentation.
Keep the boundary clear
Tie the numerator to attributable income and instrument records, and tie the denominator to the dated share register and award ledger. A mathematically balanced bridge can still contain a wrong scope or method.
Authority
Read ASC 260-10-50-1 for the required basic-to-diluted reconciliation and exclusions.
Put the concept to work
Apply this concept
- Explain and apply eps numerator and denominator reconciliation within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
Learning resources
Choose a lesson, try an application, or inspect the sources behind this concept.
Build on these ideas
- Diluted earnings per share — Apply
To apply this concept: Required. This earlier step supplies an input required by the EPS workpaper.