Diluted Earnings Per Share For Stock Warrants Using Treasury Stock Method, Formula & EPS
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11 سال پیش
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Accounting for diluted earnings per
Accounting for diluted earnings per share for stock warrants using the treasury stock method to determine stock warants included in earnings per share, A company includes diluted earnings per share for stock options & warrants outstanding whether or not presently exercisable, unless they are antidilutive (not included), (A) Exercise Price less than Market Price (dilution increases C/S), Reduces EPS, include in diluted EPS reported on financial statement, (B) Exercise Price greater than Market Price (antidilution reduces C/S) Increases EPS, do not include in EPS reported in F/S, incremental shares based on treasury stock method: Number of shares = (market price - warrant price)/market price per share x number of warrant shares, diluted earnings per share = net income/average shares outstanding + potential incremental shares, Warrant may require other than cash exchanged for stock such as debt securities & becomes complex, example based on cash purchase using stock warrant, example Corp-A Diluted Earnings per Share based on: 1-Net Income for (20X2) is $80,000, 2-Only potentially dilutive securities outstanding were 1,000 Stock Warrants each exercisable for (2) shares Common Stock at $22 per share, Case-1: Warrants issued during year (20X1), Case-2: Warrants issued (4/1/X2), outstanding 9 mths, 3-C/S outstanding during (20X2), 10,000 shares, 4-Average market price C/S during (20X2) was $40/share, detailed calculations by Allen Mursau
11 سال پیش
در تاریخ 1392/02/06 منتشر شده
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