An earnings per share figure will always be sought by analysts, despite
standard-setters proposals to revamp the reporting of corporate income.
The UK Society of Investment Professionals said in
letter to the Financial Times today: ‘Whatever the standards-setters do, an
earnings per share figure that attempts to reflect the operating performance of
a company will always be sought by analysts and, indeed, newspapers and other
publishers of financial data.’
The row over changes to earnings figures has been prompted by a letter from
the Corporate Reporting Users’ Forum insisting that existing earnings numbers be
IASB and FASB figures have suggested different structures in recent months
encompassing a wider range of balance sheet movements than those reported in
earnings currently. A discussion paper is due to come out next year.
Edward Beale, of compliance outsourcer City Group, backed the
standards-setters in a separate
to the FT: ‘While earnings is a very useful measure and comparability of
such figures is important, the International Accounting Standards Board and the
Financial Accounting Standards Board should be encouraged to bring forward
proposals facilitating a more holistic analysis of corporate performance.’
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