For consolidated companies, EPS is usually determined by dividing the consolidated net income by the parent company’s outstanding shares of stock and convertible instruments. However, there are instances in which this method may not apply, and an alternate approach must be used. Why would a company need to use the alternate approach? What are the fundamentals of this approach? How would a company calculate EPS using this approach?

Answer rating: 100% (QA)

There are several reasons why a company may need to use an alternate approach to calculate earnings per share EPS instead of dividing consolidated net ... View the full answer