What question did this study set out to answer?

The article aims to address the stance of the Financial Accounting Standards Committee regarding earnings per share calculations.

Response to the FASB Prospectus "Earnings Per Share"

View Full Paper

Ask AI

Bookmark

Authors

Financial Accounting Standards Committee supports limited project on earnings per share but opposes full review.

The article aims to address the stance of the Financial Accounting Standards Committee regarding earnings per share calculations.
The Committee reviewed the current requirements for calculating primary earnings per share (PEPS).
It provided recommendations to the Financial Accounting Standards Board regarding the adoption of an alternative reporting approach.
The Committee emphasized the importance of international comparability in the decision-making process.
The Committee supports a limited scope project to eliminate PEPS requirements and adopt a basic/fully diluted reporting approach.
It advises against a full reconsideration of all aspects of earnings per share at this time.
The Committee highlights the need for accounting standards to suit the economic system in which they are applied.

Barth et al. (1994) studied this question.

View Full Paper

Ask AI

Bookmark