Unlock the potential for precise financial reporting with this Earnings Per Share Policy. Designed to simplify complex earnings per share (EPS) calculations, it provides clear and actionable policies that ensure accuracy and compliance with established standards. By addressing both basic and diluted EPS, this tool empowers organizations to confidently navigate the intricacies of share-based compensation, paving the way for improved transparency and reliable decision making in financial reporting.

This document includes two samples that delve into critical aspects of EPS calculation. Sample 1 outlines uniform policies for determining EPS, focusing on common shares and potential dilutive instruments while adhering to key accounting standards. Sample 2 provides detailed procedures for calculating basic and diluted EPS, including the treatment of vested and nonvested shares, service contingent awards, and other share-based arrangements. Together, these samples offer valuable insights into mastering EPS reporting, helping users refine their processes and achieve greater precision in their financial disclosures.

Sample procedures include:

• Share-based awards are considered outstanding as of the grant date for computing diluted EPS, even though their exercise may be contingent on vesting.
• All shares issued should be included when computing diluted EPS if the effect is dilutive.
• Basic EPS is calculated by Treasury utilizing SFAS 123R every quarter.
• Diluted EPS is calculated by Treasury in accordance with SFAS 123R.