“Earnings per share is calculated by dividing net income available for the common shareholders by the weighted average number of shares outstanding” (Kieso, Weygant, & Warfield, 2004). Diluted earnings per share are “earnings per share including common stock, preferred stock, unexercised stock options unexercised warrants and some convertible debt” (Investorwords, n...
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Diluted earnings per share are figured by subtracting the impact of convertibles and the impact of options, warrants and other dilutive securities from basic earnings per share. To the investor, diluted earnings per share are more important because earnings per share are generally a more accurate measure of a company’s true earning power than basic earnings per share...
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The Myth Of The Earnings Yield If an investor is never likely to receive income from his holdings - then his holdings are worthless. Capital gains - the other form of income from shareholding - is also driven by earnings but it does not feature in financial equations...	4 / 967
The Myth Of The Earnings Yield Thus, earnings - though not yet distributed - were misleadingly translated to a rate of return, a yield - using the earnings yield and other measures. It is as though these earnings WERE distributed and created a RETURN - in other words, an income - to the investor...	4 / 1020
Fair Value Accounting All these initiatives clearly show the increasing importance of fair value as an accounting measurement attribute. There are also empirical evidences from research studies to show that FVA is relevant and useful to investors...	8 / 2081
Fair Value Accounting Also, the new standard imposes additional | |disclosure requirements. | | | |Background | | | |Historical cost has long been the principle used for reporting assets because it is regarded as objective and subject to substantiation...	20 / 5507