Finance & Accounting / External Reporting
Earnings Per Share, Basic vs Diluted EPS (basic / diluted)
Net income attributable to common shareholders divided by shares, either the shares outstanding (basic) or the shares that would exist if all dilutive instruments converted (diluted).
The fork, why two teams get different numbers
Basic uses the weighted-average shares actually outstanding.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 260 (Earnings per Share) · IAS 33 · SEC Regulation G