IASB consults on convergence in EPS calculation
08 August 2008
The IASB consults on proposals to simplify the calculation of earnings per share (EPS) and to eliminate differences between the methods required by IFRSs and US accounting standards to calculate EPS.
The IASB consults on proposals to simplify the calculation of earnings per share (EPS) and to eliminate differences between the methods required by IFRSs and US accounting standards to calculate EPS.
The proposals are part of the short-term convergence project that the IASB is conducting jointly with the US Financial Accounting Standards Board (FASB). Consequently the FASB has also published today an exposure draft to amend SFAS 128 Earnings per Share.
In particular, the proposals aim to achieve convergence by:
- providing a clear principle to determine which instruments should be included in the EPS calculation;
- clarifying the EPS calculation for particular instruments, such as contracts to sell or repurchase an entity’s own shares and participating instruments; and
- simplifying the EPS calculation for instruments that are accounted for at fair value through profit or loss.
- The IASB believes that the proposals would, if implemented, simplify the calculation of EPS and increase transparency for users of financial statements.
Deadline for comments is 5 December 2008
Press release
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