Diluted earnings per share and Earnings: Difference between pages

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imported>Doug Williamson
(Create the page from Earnings per share page and IAS 33 summary Deloitte IAS Plus http://www.iasplus.com/en/standards/ias/ias33)
 
imported>Doug Williamson
(Mend link.)
 
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(Diluted EPS).  
1. ''Shareholder profits.''


'Basic' earnings per share are calculated as:
In relation to a UK firm, its profits available for distribution to ordinary shareholders. 


Profit attributable to ordinary shareholders ÷ Weighted average number of shares in issue during the period.
Also known as Net Profit.




'Diluted' earnings per share are calculated by adjusting the earnings and number of shares for the effects of 'dilution' of the current ordinary shareholders' entitlements.
2. ''Profits.''


In relation to firms more generally, their profits.


'Dilution' is defined for financial reporting purposes in IAS 39 as:


A reduction in earnings per share resulting from the assumption that:
3. ''Income.''
#Convertible instruments are converted,
 
#Options or warrants are exercised, or
Any stream of income or profits, for example interest earnings.
#Ordinary shares are issued upon the satisfaction of specified conditions.
 
 
4. ''Earned income.''
 
In relation to individuals, their earned income, for example salary. 
 
Distinguished from their investment income and their capital gains.  This distinction is important in relation to individual taxation, and in relation to pensions.




== See also ==
== See also ==
* [[Convertible debt]]
* [[Adjusted earnings]]
* [[Dilution]]
* [[Diluted earnings per share]]
* [[Earnings]]
* [[Distribution]]
* [[Earnings per share]]
* [[Dividend payout ratio]]
* [[IAS 33]]
* [[Earnings at risk]]
* [[Option]]
* [[Earnings before interest and tax]]  (EBIT)
* [[Warrant]]
* [[Earnings cap]]
* [[Earnings credit allowance]]
* [[Earnings multiples]]
* [[Earnings per share]] (EPS)
* [[Earnings yield]]
* [[EBITDA]]
* [[Interest]]
* [[Invisible earnings]]
* [[Lower earnings limit]]
* [[Multiples valuation]]
* [[Net profit]]
* [[Non-GAAP earnings]]
* [[Owner earnings]]
* [[Profit after tax]]  (PAT)
* [[Projected earnings]]
* [[Price to earnings ratio]]  (PER)
* [[Retained earnings]]
* [[Shareholders cash flow]]
* [[Upper earnings limit]]


[[Category:Corporate_finance]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 15:17, 24 June 2022

1. Shareholder profits.

In relation to a UK firm, its profits available for distribution to ordinary shareholders.

Also known as Net Profit.


2. Profits.

In relation to firms more generally, their profits.


3. Income.

Any stream of income or profits, for example interest earnings.


4. Earned income.

In relation to individuals, their earned income, for example salary.

Distinguished from their investment income and their capital gains. This distinction is important in relation to individual taxation, and in relation to pensions.


See also