Earning Per Share Flashcards
How do you treat the stock split for calculating the WASCO?
If treat stock splits as if they are outstanding throughout the year.
How do we trat stock dividend for calculating the WASCO?
We treat stock dividend as if they are outstanding throughout the year.
How do we treat stock split and stock dividend for calculating the WASCO if they are issued after the year end but before the issuance of Balance sheet?
They would be added to the year of reporting even though they are issued after the year-end. Suppose the FS issuance date is March 1 and these events happened on Feb 25, they will be added to the previous yar
Do we add the share issue on Dec 31 or next year before the FS issuance in calculating the WASCO
No. Only stock splits and stock dividends are added.
If year 2 and year 3 are presented together, and there is a stock split on April 30, Year 3, what impact would it have on the WASCO of year 2
Since year 2 FS are presented along with year 3, you have to treat this stock split as it happened on Jan 1 Year 2. So it would have an impact on year 2 WASCO. It would have impact on earliest year presented. (SPLIT ADJUSTED FOR EVERY YEAR PRESENTED)
