Comparison between U.S. GAAP and International ... - Grant Thornton

Comparison between U.S. GAAP and International Financial Reporting Standards 138
IFRS
U.S. GAAP
Measurement basic EPS
Basic earnings per share shall be calculated by dividing
profit or loss attributable to ordinary equity holders of the
parent entity (the numerator) by the weighted average
number of ordinary shares outstanding (the denominator)
during the period (IAS 33.10).
The objective of basic earnings per share information is to
provide a measure of the interests of each ordinary share
of a parent entity in the performance of the entity over the
reporting period (IAS 33.11).
Earnings in basic EPS
The amounts attributable to ordinary equity holders of the
parent entity is the profit or loss from continuing
operations attributable to the parent entity and the profit or
loss attributable to the parent entity both adjusted for the
after-tax amounts of preference dividends, differences
arising on the settlement of preference shares, and other
similar effects of preference shares classified as equity
(IAS 33.12-.18).
Number of shares in basic EPS
The weighted average number of ordinary shares
outstanding during the period is the number of ordinary
shares outstanding at the beginning of the period,
adjusted by the number of ordinary shares bought back or
issued during the period multiplied by a time-weighting
factor. The time-weighting factor is the number of days
that the shares are outstanding as a proportion of the total
number of days in the period; a reasonable approximation
of the weighted average is adequate in many
circumstances (IAS 33.19-.29).
The weighted average number of ordinary shares
outstanding during the period and for all periods
presented shall be adjusted for events, other than the
conversion of potential ordinary shares, that have
changed the number of ordinary shares outstanding
without a corresponding change in resources
(e.g. bonuses and rights issues) (IAS 33.26).
Similar to IFRS (ASC 260-10-10-1 and 45-10).
Earnings in basic EPS
Income available to common stockholders shall be
computed by deducting both the dividends declared in
the period on preferred stock (whether or not paid) and
the dividends accumulated for the period on cumulative
preferred stock (whether or not earned) from income
from continuing operations (if that amount appears in
the income statement) and also from net income.
Income available to common stockholders must also be
adjusted for the effects of the redemption or induced
conversion of preferred stock
(ASC 260-10-45-11 through 45-12).
Number of shares in basic EPS
Similar to IFRS (ASC 260-10-45-10 and 55-2,
ASC Master Glossary, “Weighted-Average Number of
Common Shares Outstanding”).
Similar to IFRS (ASC 260-10-55-12 through 55-14).
Measurement – diluted EPS
When calculating diluted earnings per share, an entity
shall adjust profit or loss attributable to ordinary equity
holders of the parent entity, and the weighted average
number of shares outstanding for the effects of all dilutive
potential ordinary shares (IAS 33.31).
Similar to IFRS (ASC 260-10-45-16 and 45-21).
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