Explain Why the IASB Requires the Disclosure of Basic and Diluted

question 54

Essay

Explain why the IASB requires the disclosure of basic and diluted EPS.

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Definitions:

Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Statement

A formal document summarizing the financial position or performance of an entity, such as an income statement or balance sheet.

Operating Activity

Activities directly related to the primary business operations of a company, including production, distribution, and sales of goods and services.

Payment Of Dividends

The distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional shares.