6. An entity that chooses to disclose earnings per share on its separate financial statements shall present such earnings per share info on the face of its separate income statement. An entity shall not present such earnings per share on the consolidated financial statements. 7. Net income is equal to the amount after deducting dividends on preference share 8. If the preference share is cumulative, preference dividend for the current year only is deducted from the net income whether such dividend is declared or not. If the preference share is noncumulative, preference dividend for the current year is deducted from net income only if there is declaration 9. If there is a significant change in the ordinary share capital during the year, weighted average no. of ordinary shares outstanding during the period should be used. 10. Where stock dividends or share splits create a change in the capital structure, the increase and decrease in the number of shares shall be recognized retroactively, meaning the stock dividends or split shall be treated as a change from the date the original shares were issued.
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- Balance Sheet, Generally Accepted Accounting Principles