Deloitte
Accounting Research Tool
...
Chapter 2 — Scope

2.3 Trading (or Filing in Anticipation of Trading) in a Public Market

2.3 Trading (or Filing in Anticipation of Trading) in a Public Market

Entities whose common stock or potential common stock is not traded in a public market are not required to apply ASC 260 unless they have filed, or are in the process of filing, with a regulatory agency in preparation for the sale of common stock or potential common stock in a public market. Thus, an entity is not required to present EPS under ASC 260 when (1) its only securities that trade in a public market are nonconvertible debt securities1 and (2) it has not undertaken any filing in preparation for the sale of common stock or potential common stock in a public market. However, the entity could voluntarily present EPS data if it complies with all of the requirements of ASC 260.

Footnotes

1
An entity whose only securities that trade in a public market are debt securities that are convertible into common stock (i.e., convertible debt) is required to present EPS data under ASC 260.
2
This background discussion is only included to provide context for the discussion that follows. Section 12(b) of the Exchange Act also contains registration and reporting requirements. Entities should consult with their legal advisers regarding the requirements of U.S. securities laws.