There are no prerequisites.

Course Description

If a company is publicly-held, it is required to report earnings per share information. A publicly-held entity is an organization whose debt or equity securities are traded on an exchange or the over-the-counter market, or which is required to file reports with the Securities and Exchange Commission (SEC). The investment community and financial press closely follow earnings per share information, considering it to be a key view of corporate profitability.

Accounting for Earnings per Share notes the types of organizations that are required to present earnings per share information and describes the requirements for calculating and presenting basic earnings per share and diluted earnings per share. It also addresses the calculation methods used to derive earnings per share, including the treasury stock method, reverse treasury stock method, and two-class method.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Sep 6, 2018
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize the contents of the basic and diluted earnings per share calculations, the principle underlying these calculations, and the various methods of calculation.
  • Identify the types of dilutive securities.
  • Recognize the different ownership interests of a master limited partnership.
  • Note the legal authorization for requiring a publicly-held entity to make additional disclosures regarding non-GAAP information.

Table of Contents

Learning Objectives


Basic Earnings per Share

Diluted Earnings per Share

Treasury Stock and Reverse Treasury Stock Methods

Treasury Stock Method

Reverse Treasury Stock Method

Two-Class Method

Master Limited Partnerships

Presentation and Disclosure of Earnings per Share

Presentation Issues

Disclosure Issues

Non-GAAP Disclosures


Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation


Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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