Accounting for Diluted Shares and Earnings per Share

Accounting for Diluted Shares & Earnings per Share Course Overview

One of the most challenging topics in finance and accounting is calculating a company’s diluted share count and earnings per share. But it’s absolutely crucial to master this since the diluted share count is necessary to calculate earnings per share and is also used when valuing a company. In this course, we’ll cover the most common types of dilutive securities and how to account for these. We’ll also discuss other common adjustments to consider when calculating diluted shares.

Accounting for Diluted Shares & Earnings per Share Learning Objectives

• Understand the difference between authorized, issued, and outstanding shares.
• Basic EPS vs Diluted EPS The most common potentially dilutive securities.
• Applying the Treasury Stock Method.
• The If-Converted Method and related adjustments.
• Dealing with stock splits.

Who Should Take This Course?

Accounting is the language of business so it’s critical for finance professionals to have a solid understanding of different accounting rules and conventions since these can lead to different financial results. This course is perfect for anyone that uses financial statements, including investment bankers, equity research analysts, and financial planning and analysis (FP&A) professionals.

Courses we recommend you take in advance

1. Financial Analysis Fundamentals
2.  Accounting Fundamentals
3.  Reading Financial Statements