The basic earnings per share and diluted earnings per share ratios must be presented in an entity's:
A) statement of financial position even if the amounts are negative
B) statement of profit or loss and other comprehensive income even if the amounts are negative
C) statement of profit or loss and other comprehensive income only if the amounts are positive
D) statement of changes in equity even if the amounts are negative

Question

Quizplus · Accepted Answer

The basic earnings per share and diluted earnings per share ratios should be presented in an entity's statement of profit or loss and other comprehensive income even if the amounts are negative. This is because these ratios are important indicators of the entity's profitability and they are required disclosures by accounting standards. The statement of financial position and statement of changes in equity do not include earnings per share ratios.

The Basic Earnings Per Share and Diluted Earnings Per Share