What does diluted EPS measure?

IAS 33 Earnings per Share requires listed companies to disclose not only basic earnings per share (EPS) but also diluted EPS. It seems that there is not widespread: This post explores the objective of the approach, the reason why the IASB’s predecessor (IASC: International Accounting Standards Committee) selected it and implications for any possible changes… Continue reading What does diluted EPS measure?

3 myths about financial accounting

In describing how finance and accounting differ from each other as disciplines, someone recently made the following 3 statements about accounting: I agree that accounting and financing are different (though related) activities. But I disagree with all 3 of these statements about accounting, particularly as they relate to financial accounting. I suspect these statements are… Continue reading 3 myths about financial accounting