RegulationAccounting StandardsFASB attempts US convergence with international EPS calculation

FASB attempts US convergence with international EPS calculation

The US standards board is asking for views on how its new earnings per share rules are performing

The Financial Accounting Standards Board is seeking views on whether it has
achieved it’s goal of simplifying an accounting rule which sets out how to
calculate earnings per share (EPS), so that differences between the US and
international standard are eliminated.

The US standard setter, which issued a revised exposure draft of Statement
128 yesterday, proposed the changes to the standard with the intention of
simplifying the calculation and converging the calculation of EPS with the
International Accounting Standards Board’s EPS rule, called IAS 33.

The statements are intended to improve the comparability of EPS because the
denominator used to calculate EPS under Statement 128 would be the same as that
used to calculate EPS under IAS 33, with limited exceptions. Those limited
exceptions relate to certain instruments for which the underlying accounting
under US generally accepted accounting principles (GAAP) and international
financial reporting standards (IFRS) is different.

FASB practice fellow Sheri Wyatt said that in addition to improving financial
reporting, the proposed amendment to Statement 128 is an important step in the
international convergence process

‘By eliminating the differences between Statement 128 and IAS 33, the
proposed amendment will enhance the comparability of EPS reported under U.S.
GAAP and IFRS,’ said Wyatt.

Comment submission must be made in writing by December 5, 2008 by email to
director@fasb.org, File Reference No. 1240-001.

Further reading:

Read the
exposure draft of Statement 128

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

2w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

5m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter