US GAAP ASC 260: Earnings Per Share (EPS) for CPA FAR

This course provides a comprehensive and practical understanding of US GAAP ASC 260 – Earnings Per Share (EPS) and its application in financial reporting. Designed for learners preparing for the US CPA Financial Accounting and Reporting (FAR) section, the course explains the key concepts, principles, calculations, and disclosure requirements related to EPS in a clear and structured manner.

You will begin by understanding the purpose and significance of Earnings Per Share, including how EPS is used to evaluate a company’s profitability and financial performance. The course introduces the concept of capital structure and explains the difference between simple and complex capital structures, helping you understand how a company’s equity structure can influence EPS calculations.

The course provides a detailed, step-by-step approach to calculating Basic EPS. You will learn how to determine income available to common shareholders, calculate the weighted-average number of common shares outstanding, and understand the appropriate treatment of stock splits and similar share changes. Practical examples are included to help you connect the accounting concepts with real-world financial reporting situations.

You will also gain an understanding of complex capital structures and the considerations involved in applying ASC 260 when a company has different types of securities or equity arrangements. The course further covers the presentation and disclosure requirements for EPS, enabling you to understand how EPS information is communicated in financial statements.

To reinforce your learning, the course includes practice questions and practical calculations based on the concepts covered throughout the module. These exercises are designed to help you apply ASC 260 requirements, improve your calculation skills, and prepare effectively for questions related to Earnings Per Share in the US CPA FAR examination.

By the end of this course, you will have a strong foundation in ASC 260 – Earnings Per Share, including its underlying concepts, calculation methods, capital structure considerations, and financial statement presentation and disclosure requirements. This knowledge will help you approach EPS-related questions with greater clarity and confidence while strengthening your overall understanding of US GAAP financial reporting.