Earnings per share $($EPS$)$ is computed using net income attributable to common shareholders in the numerator $($excluding preferred stock dividends$)$not total comprehensive income. Comprehensive income is defined as net income $+$ other comprehensive income $($OCI$),$ where OCI includes items such as foreign currency translation adjustments, cash$-$flow hedge marks, pension remeasurements, and unrealized gains$/$losses on AFS debt securities$.$ These OCI items bypass net income and accumulate in accumulated other comprehensive income within shareholders$$ equity $($balance sheet$),$ so they do not affect EPS.

True

False

Clear selection

Listen