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UK companies follow International Financial Reporting Standards when reporting Earnings Per Share. EPS is a vital metric showing a companys profitability per share, helping investors assess performance.
Basic EPS is calculated by dividing the profit or loss for ordinary shareholders by the weighted average number of shares during the reporting period. Diluted EPS adjusts for potential dilution from convertible securities like stock options.
Company clearly disclose both basic and diluted EPS in their income statements providing transparency on potential dilution impact. Reconciliation of the EPS calculation numerator and denominator ensures clarity for stakeholder.
Basic EPS is calculated by dividing the profit or loss for ordinary shareholders by the weighted average number of shares during the reporting period. Diluted EPS adjusts for potential dilution from convertible securities like stock options.
Company clearly disclose both basic and diluted EPS in their income statements providing transparency on potential dilution impact. Reconciliation of the EPS calculation numerator and denominator ensures clarity for stakeholder.