Earnings per Share (EPS)
Under APB #15--potentially three EPS calculations were done:
- Simple EPS (SEPS) No convertible or dilutive securities present.
- Primary EPS (PEPS) Presence of Common Stock Equivalents (CSE) must be considered.
- Fully Diluted EPS (FDEPS) All potentially dilutive securities must be considered regardless if they are a CSE or not.
- Under new standard:
- Only two EPS calculations to be done: Basic EPS (BEPS) (previously known as SEPS) and Diluted EPS (DEPS) Letís look at text illustration.
- 3% materiality test for reporting eliminated.