1.1 Introduction

This Roadmap discusses the calculation, presentation, and disclosure of EPS in an entity’s financial statements. Under ASC 260, entities are required to present or disclose basic EPS and diluted EPS amounts for income from continuing operations, income from discontinued operations, and net income for each class of common stock for each financial reporting period presented. Basic EPS is calculated as income available to common stockholders divided by the weighted-average number of common shares outstanding, and diluted EPS includes potential common stock that, if actually issued, would dilute basic EPS.