Abstract
Earnings per share (EPS) is one of the most widely quoted statistics in financial analysis. It came into great prominence in the US during the late 1950s and early 1960s due to the widespread use of the price earnings ratio (PE) as a yardstick for investment decisions. By the late 1960s, its popularity had switched across the Atlantic and for the purposes of consistency and comparability, it became important that an agreed method of computed EPS was established.
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References
D. Waller, ‘Shares in stores sector hit by accounting move’, Financial Times, June 25,1987.
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CA85,s744.
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Ibid., para. 5.
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Ibid., Appendix 1, para. 18.
Ibid., Appendix 1, para. 11.
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Ibid., Appendix 1, para. 4.
Ibid.
Ibid., Appendix 1, para. 6.
Ibid., Appendix 1, para. 7.
Ibid., Appendix 1, para. 10.
Ibid., para. 8.
Ibid.
Ibid., para. 9.
Ibid., para. 16.
Ibid., para. 12.
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See, for example, Cordiant plc, Report and Accounts 1996, pp. 66 and 72, and Raine plc, Report and Accounts 1996, pp. 16 and 26.
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Ibid., Appendix 1, para. 27.
Ibid., Appendix 1, para. 24.
Ibid., para. 16.
Ibid.
Ibid., Appendix 1, para. 22.
Ibid., Appendix 1, para. 29.
Ibid., Appendix 1, para. 33.
Ibid., Appendix 1, para. 31.
Ibid.
Ibid., Appendix 1, para. 27.
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Ibid., para. 5.
Ibid., paras. 6–9.
Ibid., para. 2.
Ibid., para. 30.
Ibid., para. 33.
Ibid., para. 15.
Ibid., para. 10.
Ibid., para. 2.
Ibid., para. 22.
Ibid., para. 33.
Ibid., para. 11.
Ibid., para. 12.
Ibid., para. 13.
Ibid., para. 43.
Ibid., para. 14.
Ibid., para. 47.
Ibid., para. 48.
Ibid., para. 49.
Ibid., para. 50.
Ibid., para. 16
Ibid., para. 17.
Ibid., para. 18.
Ibid., para. 19.
SFAS 128, para. 43.
APB 15, para. 25.
SFAS 85, Yield Test for Determining whether a Convertible Security is a Common Stock Equivalent, FASB, March 1985, para. 3.
APB 15, para. 14.
Ibid., para. 36.
APB 30, Reporting the Results of Operations — Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions, AICPA, June 1973, para. 9.
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APB 20, Accounting Changes, AICPA, July 1971, para. 20.
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Ibid., para. 40.
Ibid.
Ibid., para. 37.
Ibid., paras. 20–25 and 29.
Ibid., paras. 31–34
Ibid., Appendix C, Illustrations 6–8.
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© 1997 Ernst & Young
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Davies, M., Paterson, R., Wilson, A. (1997). Earnings per share. In: UK GAAP. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13819-7_23
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