Amendments to simplify and achieve international convergence in the calculation of EPS

California CPA, Sept, 2008

The International Accounting Standards Board (IASB) has published for public comment proposals to simplify the calculation of earnings per share and to eliminate differences between the methods required by International Financial Reporting Standards and U.S. accounting standards to calculate EPS.

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The proposals are part of the short-term convergence project that the IASB is conducting jointly with FASB, which also has issued a revised Exposure Draft of a proposed Statement of Financial Accounting Standards, Earnings per Share an amendment of FASB Statement No. 128.

This proposal seeks to improve financial reporting by clarifying and simplifying the method of calculating earnings per share, while promoting the international convergence of accounting standards by eliminating major differences that exist between FASB Statement No. 128, Earnings per Share, and International Accounting Standard (IAS) 33, Earnings per Share.

Comments on both proposals are due by Dec. 5.

For more information, visit www.iasb.org or http://fasb.org/news/nr080708.shtml.>

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