This policy sample establishes guidelines and procedures a company should follow when calculating earnings per share (EPS).
In this sample, basic EPS are calculated by treasury utilizing SFAS 123 every quarter, share-based awards are not included in the calculation, vested share is included in weighted average stock options, vested options are not included in weighted average stock options, diluted EPS are calculated by treasury in accordance with SFAS 123R, nonvested stock is included, grant dates of outstanding share-based awards are included, and all shares issued should be included when computing diluted EPS if the effect is dilutive.