IFRS and GAAP are similar in regard to computing earnings per share components. However, the calculation of the impact from the exercise of options differs.
Required:
a.Describe the difference in treatment of unrecognized compensation cost relating to options in the calculation of EPS.
b.Explain why the IFRS approach will systematically result in lower reported diluted EPS.

Question

IFRS and GAAP are similar in regard to computing earnings per share components. However, the calculation of the impact from the exercise of options differs.
Required: 
a.Describe the difference in treatment of unrecognized compensation cost relating to options in the calculation of EPS.
b.Explain why the IFRS approach will systematically result in lower reported diluted EPS.

Quizplus · Accepted Answer

The Answer of IFRS and GAAP are similar in regard to computing earnings per share components. However, the calculation of the impact from the exercise of options differs.
Required: 
a.Describe the difference in treatment of unrecognized compensation cost relating to options in the calculation of EPS.
b.Explain why the IFRS approach will systematically result in lower reported diluted EPS.

IFRS and GAAP Are Similar in Regard to Computing Earnings