Why this is mistaken
Recompute each period with its corrected numerator, weighted-average shares, preferred dividends, control number, and potential securities. The correction can change diluted participation. One current denominator cannot represent historical per-share amounts.
Where to watch
When this mistake may appear
- A principle change or error affects comparative net income.
Check your work
Your work may contain this mistake if:
- Divides a cumulative adjustment by current shares outstanding.