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Basic Question 22 of 40
The if-converted method of computing earnings per share (EPS) data assumes conversion of the applicable securities as of the ______.
B. beginning of the period, regardless of issuance date
C. mid-way point of the period reported
A. beginning of the period reported, or at the time of issuance if later
B. beginning of the period, regardless of issuance date
C. mid-way point of the period reported
User Contributed Comments 3
| User | Comment |
|---|---|
| azramirza | whats if the converted method? |
| vatsa | Its a method for computing diluted EPS. If a company is having potentially dilutive securities, if-converted method tries to determine EPS if dilutive securities were actually converted in to common stock at the beginning of the year. |
| khalifa92 | the timing of conversion doesn't change dilutive eps |
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Learning Outcome Statements
describe how earnings per share is calculated and calculate and interpret a company's basic and diluted earnings per share for companies with simple and complex capital structures including those with antidilutive securities
CFA® 2024 Level I Curriculum, Volume 2, Module 2.