FASB Issues Revised Exposure Draft on Earnings per Share
August 25, 2008
On August 7, 2008, the Financial Accounting Standards Board (FASB) issued a revised Exposure Draft of a proposed Statement of Financial Accounting Standards, Earnings per Share. The proposed Statement would amend FASB Statement No. 128, Earnings per Share, to simplify the method of calculating earnings per share (EPS) and eliminate major differences that currently exist between Statement No. 128 and International Accounting Standard (IAS) 33, Earnings per Share, thereby promoting international convergence of accounting standards. Specifically, the proposed Statement will make the denominator used to compute EPS under proposed Statement 128 and IAS 33 the same with limited exceptions relating to certain instruments where the accounting underlying U.S. generally accepted accounting principles (GAAP) and IFRS is different.
Under the proposed Statement, an entity would be required to apply the requirements of the proposed Statement at the beginning of a fiscal year and in interim fiscal periods within those fiscal years. The effective date of the proposed Statement will be determined when the FASB approves the final amendments to Statement 128. Early application of the proposed Statement is prohibited.
The Exposure Draft seeks comments on whether the proposed Statement achieves its goal of simplifying the computation of EPS and enhancing the comparability of EPS under U.S. GAAP and IFRS. Comments must be received by December 5, 2008.
http://www.fasb.org/news/nr080708.shtml