ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266379017
Author: Christensen
Publisher: INTER MCG
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Chapter 10, Problem 10.21Q
To determine

Consolidated earnings per share:is calculated in the same way as earnings per share is calculated in a single corporation. Consolidated earnings per share is based on the income attributed to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and any preferred dividends requirement of the parent company from consolidated net income. The resulting amount is then divided by the weighted-average number of the parent’s common shares outstanding during the period. In computation of EPS, the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are treated as if they had been exercised, in addition income available to subsidiary common shareholders also changes.

how rights, warrants and options of subsidiary companies are treated in consolidated EPS.

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ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS

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