Which statement is correct about earnings per share (EPS)?
A)EPS does not need to be disclosed under IFRS.
B)EPS needs to be disclosed under IFRS.
C)EPS is calculated for preferred shares.
D)EPS is a ratio used to assess leverage.

Question

Quizplus · Accepted Answer

EPS is a measure of a company's profitability and is required to be disclosed under IFRS. EPS is calculated by dividing the net income by the average number of outstanding shares. It is a commonly used metric for investors to evaluate a company's financial performance. Preferred shares may also have their own EPS figure, but the main EPS calculation is for common shares. EPS is not a ratio used to assess leverage.

Which Statement Is Correct About Earnings Per Share (EPS)