The earnings per share data required of a company depend on the nature of its capital structure.

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The earnings per share data required of a company depend on the nature of its capital structure. A corporation may have a simple capital structure and compute only “basic earnings per share” or it may have a complex capital structure and have to compute basic earnings per share and “diluted earnings per share.”

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Define the term complex capital structure and discuss the disclosures (both financial and explanatory) necessary for earnings per share when a corporation has a complex capital structure.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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