Deloitte
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Chapter 8 — Presentation and Disclosure

8.4 Earnings per Share

8.4 Earnings per Share

ASC 480-10 does not comprehensively address how to determine EPS for instruments within its scope. Instead, an entity applies ASC 260 except as specified in ASC 480-10-45-4, which requires the entity to make certain adjustments to the EPS calculation performed under ASC 260 for (1) mandatorily redeemable financial instruments and (2) forward contracts that require physical settlement by repurchase of a fixed number of equity shares of common stock in exchange for cash (see Section 8.4.1). For other contracts within the scope of ASC 480-10, an entity applies ASC 260, including to other forward contracts and written put options on common stock (see Section 8.4.2) and share-settled debt (see Section 8.4.3). Special considerations are necessary for contracts that may be settled in stock or cash. For a detailed discussion of the computation of EPS, see Deloitte’s Roadmap Earnings per Share.