- earnings per share
- = epsThe profit in pence attributable to each ordinary share in a company, based on the consolidated profit for the period, after deducting minority interests and preference share dividends. This profit figure is divided by the weighted average number of equity shares in issue during the period. The eps may be calculated on a net basis or a nil basis. Using the net basis, the tax charge includes any variable elements of tax, such as unrelieved overseas tax arising from the payment or proposed payment of dividends (see overseas-income taxation). The nil basis excludes such items from the tax charge. The eps should be shown on the face of the profit and loss account, both for the period under review and for the corresponding previous period. The basis of calculating the earnings per share should be disclosed on the face of the profit and loss account or in the notes to the accounts.Earnings per share was seen as an important measure of performance in the 1950s and 1960s but its significance has since declined. In recent years the UK and international standard setters have worked together to agree a common approach to eps. This resulted in the issuing of Financial Reporting Standard (FRS) 22, Earnings Per Share, to replace the earlier FRS 14 in 2004. This requires the disclosure of both basic eps and fully diluted earnings per share on the profit and loss account.
Accounting dictionary. 2014.
Look at other dictionaries:
earnings per share — (EPS) The net profit attributable to ordinary shareholders divided by weighted average number of ordinary shares in issue. A fully diluted EPS calculation means that the figure is adjusted to take account of shares that will be issued under… … Law dictionary
earnings per share — noun plural BUSINESS a number that expresses how much a company pays its stockholders for every SHARE in the company that they own … Usage of the words and phrases in modern English
earnings per share — ( EPS) A company s profit divided by its number of common outstanding shares. If a company earning $2 million in one year had 2 million common shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses… … Financial and business terms
Earnings per share — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
earnings per share — eps The profit in pence attributable to each ordinary share in a company, based on the consolidated profit for the period, after deducting minority interests and preference share dividends. This profit figure is divided by the weighted average… … Big dictionary of business and management
earnings per share — EPS *Net income accruing to a corporation’s stockholders, expressed in terms of individual shares of ownership. The earnings per share (EPS) is calculated by dividing net income by *common stock. In practice, this basic calculation can require… … Auditor's dictionary
Earnings per share — Der Gewinn je Aktie (englisch Earnings per Share, EPS) ist eine Kennzahl zur Beurteilung der Ertragskraft einer Aktiengesellschaft. Für die Ermittlung dieser Kennzahl wird der Konzernjahresüberschuss des Unternehmens (im untersuchten Zeitraum)… … Deutsch Wikipedia
earnings per share — /ˌɜ:nɪŋz pə ʃeə/ plural noun the money earned in dividends per share, shown as a percentage of the market price of one share. Abbreviation EPS … Dictionary of banking and finance
earnings per share — noun a company s net profit divided by the total number of shares in the company, usually expressed as cents per share. Also, EPS … Australian English dictionary
earnings per share — the net income of a corporation divided by the total number of shares of its common stock outstanding at a given time. Abbr.: EPS * * * … Universalium