Why this is mistaken
A split after year-end affects only next year's shares. Recast all presented share and per-share data when the qualifying event occurs before financial statements are issued.
Where to watch
When this mistake may appear
- The arithmetic produces a lower per-share amount.
Check your work
Your work may contain this mistake if:
- Accepts the quotient without tracing the numerator, dated shares, instrument method, and antidilution control.