ACC 309 2-1 Discussion.docx - ACC 309 2-1 Discussion Retained Earnings Policy Public enterprises can offer either dilutive or anti-dilutive securities

ACC 309 2-1 Discussion.docx - ACC 309 2-1 Discussion...

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ACC 309 2-1 Discussion: Retained Earnings Policy Public enterprises can offer either dilutive or anti-dilutive securities. Both dilutive and antidilutive securities can effect the results of earnings per share (EPS) in different ways. Dilutive securities are potentially convertible into common stock. Also, dilutive securities could potentially dilute or reduce EPS due to the increase in the number of ordinary shares after conversion. However, some potentially convertible securities can be antidilutive. This means that their inclusion in the EPS calculation would result in an EPS which is higher than the company’s basic EPS. With that said, under both IFRS and US
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  • Fall '15
  • Earnings Per Share, Generally Accepted Accounting Principles, Dilutive Securities, public enterprises, anti-dilutive securities

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