FASB joins IASC in earnings-per-share project.The Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). added a project on earnings per share to its agenda. The project will be conducted concurrently with an International Accounting Standards Committee International Accounting Standards Committee was founded in June 1973 in London and replaced by the International Accounting Standards Board on April 1, 2001. It was responsible for developing the International Accounting Standards and promoting the use and application of these study on the same topic. The FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). said the project fits into its overall mission to improve the quality of financial reporting by promoting international comparability of accounting standards. The IASC IASC International Accounting Standards Committee IASC Inter-Agency Standing Committee (United Nations) IASC International Arctic Science Committee IASC International Association for Statistical Computing welcomed the FASB announcement as another step in the IASC's ongoing cooperation with worldwide standard-setting bodies. Kimberly Kimberly may refer to:
Petrone said the project will pursue two goals. "The first is to simplify U.S. accounting rules on earnings per share. The second goal is to issue a standard that is compatible with the one the IASC will issue." The FASB proposal will consider the IASC's requirement that basic earnings per share (net income/weighted average of common stock outstanding) and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of be presented. U.S. accounting rules call for the presentation of primary earnings per share (net income/ common stock + common stock equivalents outstanding) and fully diluted earnings per share. Both the FASB and the IASC expect to issue exposure drafts on earnings per share late in 1994, with final statements following in the latter part of 1995. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion