综合详解介绍cma p2版unit 3

EarningsPerShare-SimpleCapitalSimpleStructure--Onlycommonstock;nopotentiallydilutivesecurities.ComplexStructure--Potentiallydilutivesecuritiesarepresent.“Dilutive”meanstheabilitytoinfluencetheEPSinadownwarddirection.ComputingComputingEarningsPerEarningperTheInternationalAccountingStandardsCommitteerequirestheEPSshouldbepresentedonthefaceoftheincomestatement,andisdisclosedrightbelowthenetprofitfigure.Earningpershare=netprofit/sharesEarningspershareindicatestheincomeearnedbyeachshareofcommonstock.CompaniesreportearningspershareonlyforcommonWhenincomestatementcontainsintermediatecomponentsofincome,companiesshoulddiscloseearningspershareforeachEarningsPerShare-SimpleCapitalPreferredStockSubtractsthecurrentyearpreferredstockdividendfromnetincometoarriveatincomeavailabletocommonstockholders.Preferreddividendsaresubtractedoncumulativepreferredstock,whetherdeclaredornot.ComputingEarningsPerPleasenetprofitmustbenetofdividendforpreferredmustbeoutstandingordinarystocks(commonsharesoutstandingmustbefortheentireyear,soifwithintheyear,shareoutstandingchanges,mustuseweighted-averagenumberofsharesoutstandingfortheyearEarningsEarningsPerShare-SimpleCapitalCompaniesmustweightthesharesbythefractionoftheperiodtheyareoutstanding.Stockdividendsorstocksplits:companiesneedtorestatethesharesoutstandingbeforethestockdividendorsplit.OnJanuary1,2010,ChangCorp.had480,000sharesofcommonstockoutstanding.During2010,ithadthefollowingtransactionsthataffectedthecommonstockaccount.FebruaryMayJune

Issued120,000Issueda20%stockIssueda3-for-1stocksplitDeterminetheweighted-averagenumberofsharesoutstandingasofDecember31,2010.ChangeinofJan. xx3Feb. xx3Mar. x3May x3June3/1 xOct. xDilutiveSecuritiesandEarningsPerDilutiveSecuritiesDilutiveSecuritiesandCompensationPlansDebtandequityConvertibledebt

DilutedEPSincludestheeffectofallpotentialdilutivecommonsharesthatwereoutstandingduringtheperiod.ShouldcompaniesreporttheseinstrumentsasliabilityorBondswhichcanbeconvertedintoothersecuritiesarecalledconvertibleBenefitBenefitofa (guaranteed+(at(attheholder’sPrivilegeofExchangingitforTwomainreasonscorporationsDesiretoraiseequitycapitalwithoutgivingupmoreownershipcontrolthannecessary.ObtaincommonstockfinancingatcheaperConvertiblepreferredstockincludesanoptionfortheholdertoconvertpreferredsharesintoafixednumberofcommonConvertiblepreferredstockisconsideredpartstockholders’Nogainorlossrecognizedwhenconverted.Usebookvaluemethod.DilutedEPS–ConvertibleMeasurethedilutiveeffectsofpotentialconversiononEPSusingtheif-convertedmethod.Thismethodforaconvertiblebondtheconversionatthebeginningoftheperiod(oratthetimeofissuanceofthesecurity,ifissuedduringtheperiod),andtheeliminationofrelatedinterest,netof(ConvertibleBonds):In2010BurakaEnterprisesissued,atpar,$1,000,8%bonds,eachconvertibleinto100sharesofcommonstock.Burakahadrevenuesof$17,500andexpensesotherthaninterestandtaxesof$8,400for2011.(Assumethatthetaxrateis40%.)Throughout2011,2,000sharesofcommonstockwereoutstanding;noneofthebondswasconvertedorredeemed.ComputedilutedearningspershareforAssumesamefactsasthoseforPart(a),exceptthe75bondswereissuedonSeptember1,2011(ratherthanin2010),andnonehavebeenconvertedorredeemed.(a)ComputedilutedearningspershareforCalculationofNetBondinterestexpense(75x$1,000xIncomebeforeIncometaxexpenseNet$(a)ComputedilutedearningspershareforWhencalculatingDilutedEPS,beginwithBasisBasicNetincome=

=Weightedaverageshares=(a)Computedilutedearningspersharefor$1,860+$1,860+$6,000(1-.40)=+Basic=

EffectonEPS=

=(b)AssumebondswereissuedonSept.1,2011CalculationofNet Bondinterestexpense(75x$1,000x8%xIncomebeforeIncometaxes AssumebondswereissuedonSept.1,2011WhencalculatingDilutedEPS,beginwithBasisDiluted=$4,260=+Basic=

$2,000(1-EffectonEPS=

7,5007,500x4/12

(Variation-ConvertiblePreferredStock):Priorto2010,BarkleyCompanyissued40,000sharesof6%convertible,cumulativepreferredstock,$100parvalue.Eachshareisconvertibleinto5sharesofcommonstock.Netincomefor2010was$1,200,000.Therewere600,000commonsharesoutstandingduring2010.Therewerenochangesduring2010inthenumberofcommonorpreferredsharesoutstanding.ComputedilutedearningspershareforComputedilutedearningspershareforWhencalculatingDilutedEPS,beginwithBasisBasicNetincome$1,200,000–Pfd.Div.=Weightedaverageshares=**40,000sharesx$100parx6%=$240,000ComputedilutedearningspershareforWhencalculatingDilutedEPS,beginwithBasisDilutedEPS=BasicEPS= EPS=

*(40,000*(40,000xComputedilutedearningspersharefor2010assumingeachshareofpreferredisconvertibleinto3sharesofcommonstock.DilutedEPS=BasicEPS= EPS=

*(40,000*(40,000xComputedilutedearningspersharefor2010assumingeachshareofpreferredisconvertibleinto3sharesofcommonstock.Diluted Basic=DilutedBasicEPS=

EffectonEPS=2.00

**(40,000xDilutiveSecurities----StockCertificatesentitlingtheholdertoacquiresharesofstockatacertainpricewithinastatedperiod.NormallyTomakeasecuritymoreAsevidenceofpreemptiveAscompensationtoDilutiveSecurities----StockRightstoSubscribetoAdditionalStockRights-existingstockholdershavetheright(preemptiveprivilege)topurchasenewlyissuedsharesinproportiontotheirholdings.PriceisnormallylessthancurrentmarketCompaniesmakeonlyamemorandumDilutedEPS–OptionsandMeasurethedilutiveeffectsofpotentialconversionusingthetreasury-stockmethod.Thismethodcompanyexercisestheoptionsorwarrantsatthebeginningoftheyear(ordateofissueiflater),andthatitusesthoseproceedstopurchasecommonstockforthetreasury.DilutedEPS–OptionsandTreasureStock库藏股Thatisthestockshavebeenissuedandreacquiredbytheissuingcompanybuthavenotbeensoldorretired.Thecompanydoessowithbelowintentions:DilutedEPS–OptionsandTreasureStock库藏股wanttohavesharesavailabletodistributetoemployeesthroughshareoptionplantryingtomaintainafavorablemarketforthecompany'swanttoincreasethecompany'searningperwanttopreventahostile(EPSwithOptions):ZambranoCompany’snetincomefor2010$40,000.Theonlypotentiallydilutivesecuritiesoutstandingwere1,000optionsissuedduring2009,eachexercisableforoneshareat$8.Nonehasbeenexercised,and10,000sharesofcommonwereoutstandingduring2010.Theaveragemarketpriceofthestockduring2010was$20.ComputedilutedearningsperAssumethe1,000optionswereissuedonOctober1,2010(ratherthanin2009).Theaveragemarketpriceduringthelast3monthsof2010was$20.(a)ComputedilutedearningspershareforProceedsifsharesissued(1,000x Purchasepricefortreasuryshares Sharesassumedpurchased Sharesassumed (a)ComputedilutedearningspershareforWhencalculatingDilutedEPS,beginwithBasisDiluted

=

=Basic =(b)Computedilutedearningspershareassumingthe1,000optionswereissuedonOctober1,2010. ÷ SharesassumedWeightfor3monthsassumedoutstanding Computedilutedearningspershareassumingthe1,000optionswereissuedonOctober1,2010.Diluted

=

=Basic=

EPSPresentationandAcompanyshouldshowpershareamountsfor:incomefromcontinuingoperations,incomebeforeextraordinaryitems,andnetincome.Pershareamountsforadiscontinuedoperationoranextraordinaryitemshouldbepresentedonthefaceoftheincomestatementorinthenotes.EarningspershareBEPS:undersimplecapitalstructure,thereisonlycommonBEPS=incomeavailabletocommonshareholdersW-AnumberofcommonsharesoutstandingW-AnumberofcommonsharesStockdividendandstocksplitsareassumedtohavebeenoutstandingasofthebeginningoftheperiodIssuanceofnewstockorpurchaseoftreasurystockshouldbecalculatedproportionallyEarningspershareDEPS:undercomplexcapitalstructure,thereiscommonstock,preferredstockandpotentialcommonstockpotentialcommonstock:convertiblepreferredstock,convertibledebt,options/warrant“incomeavailabletocommonshareholders”+dividendsonconvertiblepreferredstock+after-taxinterestonconvertibledebt“W-AnumberofcommonsharesconverteddilutedpotentialcommonCalculationofDEPSwhenthereisStep1:calculatetheeffectofoptionsandwarrantsonIfoptionexerciseprice<marketprice,Optionshavedilutiveeffect→includethemindiluted1.Assumealloptionsareexercised→addnew2.Assumeproceeds(no.ofsharesxexerciseprice)areusedtorepurchasepreviouslyissuedcommonshares→subtracttheseIfoptionexerciseprice>marketprice,Optionsdonothavedilutiveeffect→notincludedindilutedEPS.AnalyticalIssuesinFinancialEconomicprofitandaccountingEffectsofchangingpricesandFairvalueAccountingforforeignEconomicEconomicprofitandaccountingAccountingAccounting(business)profitreflectsexplicitcostsandrevenues.BasedonaccrualRequiremeasuringthegenerationofresourcesatartificialpointsoftime.EconomicEconomicprofitandaccountingEconomicThenetpresentvalueofitsearningsoveritsProfitabovearisk-adjustednormalConsiderscashandnoncashEconomicProfit:excessofrevenueovertotalcostsAccountingProfit:economicprofit+implicitcostsEconomicProfitTotalTotalRevenue–(ExplicitCosts+ImplicitAccountingProfitTotalTotalRevenue–ExplicitTheobjectiveoffinancialaccountingisnottomaketheaccountingprofitclosetotheeconomicprofit,buttoprovideareasonablebasistoinfertheeconomicprofitfromthereportedaccountingprofits.EffectsEffectsofchangingpricesandDuringperiodsofinflation,revenuesarebasedonthegeneralpurchasingpowerofthecurrentperiod.Expenses,suchasdepreciationandamortization,maybebasedoncurrencyofhighergeneralpurchasingpowerbecausetheirrelatedassetsweretypicallyacquiredinthepastwhenGPLswerelower.Deductingexpensesbasedonhistoricalpurchasingpowerfromrevenuesthatexpressedincurrencyofcurrentpurchasingpoweryieldsanonsensicalindexofperformance.Duringaperiodofspecificpricechanges,assetsrecordedattheiroriginalacquisitioncostsseldomreflecttheassets’current(higher)valueresultinginanoverstatementinreportedincome.This,inturn,mayleadto:HigherHigherHigherFromamanagerialperspective,accountingnumbersunadjustedforchangingpricesdistort:FinancialBudgetPerformanceAccountingAccountingforforeignSpotmarket（现汇交易市场）--spotrate（即期汇率--Theexchangeofcurrencywithintwobusinessdaysofthedateonwhichthetwoforeignexchangetradersagreetothethebidprice（买入价）theofferprice（卖出价）Britishpoundssterling:$1.9072/82Bank:buypoundsfor$1.9072sellpoundsfor$1.9082profitmargin:Mid-rate:$Foreigncurrency--transactionsdenominatedinacurrencyotherthanthereportingcurrencyofthefirm.--involvebuyingandsellingofgoodsandservices,theborrowingorlendingoffunds,thereceiptorpaymentofdividends,royalties,interestpayments,orotherfinancialtransactionsAccountingAccountingforforeignFouraccountingproblemsinaforeignTheinitialrecordingoftheTherecordingofforeigncurrencybalancesatsubsequentbalancesheetdatesThetreatmentofanyforeignexchangegainsandTherecordingofthesettlementofforeigncurrencyreceivablesandpayableswhencomedueAccountingAccountingforforeignMonetaryitemsandnonmonetary Monetaryitemsshouldberecordedatclosingrate(thespotrateonthebalancesheetdate/currentrate). Nonmonetaryitemscarriedathistoricalcostshouldberecordedatthehistoricalexchangerate(thespotrateineffectwhenthetransactionwasinitiallyrecorded). NonmonetaryitemscarriedatfairvalueshouldberecordedattherateineffectwhenthefairvalueswereIllustration:AccountingforsalesandAU.S.firmimportsequipmentfromGermanyonMarch1€200000whentheexchangerateis$1.3112/euro.PaymentineurodoesnothavetobemadeuntilApril30.March31:theexchangerateis$1.3500April30:theexchangerateis$1.3300Assumethatthefirm’sbooksareclosedattheendofthecalendarquarter.AccountingAccountingforforeignMarch1:€200000×1.3112=$262262262Accounts 262March31:€200000×(1.3500-1.3112)=$ForeignForeignexchange77April30:€200000×1.3300=$266AccountsAccounts270266 4AccountingAccountingforforeign②Sale:thesameinformationbutassumingaMarch1:€200000×1.3112=$262Sales262262March31:€200000×(1.3500-1.3112)=$AccountsAccounts7Foreignexchange 7②Sale:thesameinformationbutassumingaApril30:€200000×1.3300=$266 266 4Accounts 270WhensalesorpurchasesaremadeRecordforeigncurrencytransactionsatthespotrateineffectatthetransactiondate. Ifreceivablesorpayablesremaineduncollectibleorunpaidonthebalancesheetdate,ithastobeconvertedusingtheexchangerateofDec.31.AnycorrespondinggainorlosseshastobeAccountingAccountingforforeignEffectsonfinancialAR.Ifthedollarweaken/strongerwithrespecttoforeignMore/LessARwillbereceivedAnexchangegain/lossTheliquidityrationbecomefavorably/EffectsonfinancialAP.Ifthedollarweaken/strongerwithrespecttoforeigncurrencyMore/LessAPwillbepaidAnexchangeloss/gainTheliquidityrationbecomeunfavorably/AccountingAccountingforforeign(3)Illustration:AccountingforTheThedebtisrecordedinacurrencyatthespotBalancesheetdate:thedebtmustberestatedatthenewexchangerate.Thedifference(gain/loss)mustberecordedintheincomeTheTheinterestexpenseisaccruedataverageexchangerateovertheperiodandispaidonaspecificdate.Thedifference(gain/loss)mustberecordedintheincomestatementtoo.AccountingAccountingforforeignJanuary1,assumethataU.S.firmborrows2millionSwissfrancsfor5yearsat3%interestpaidsemiannuallyinSwissfrancs.Theprincipalwillberepaidattheendoftheloan.AssumetheloanisadjustedeverysixExchangeratesforthefirstJanuary$June$December$Theaverageexchangerateforthefirstsixmonthswas$.79825andforthesecondsixmonthsitwas$.8370.1NotesCHF2million×0.8604=$16121612NotesForeignExchange(CHF0.7901-0.8604)×CHFmillion=$32600InterestForeignExchangeCHF2million×(3%/2)×=$23948（interestCHF2million×(3%/2)×=$23703(interest32322323ForeignExchangeLossNotesPayable(CHF0.8839–0.7901)×CHFmillion=$187600InterestexpenseForeignExchangeLossCHF2million×(3%/2)×=$25110（interestCHF2million×(3%/2)×=$26517(interesccountingAccountingforforeignTranslationofforeigncurrencyfinancial①Functionalcurrency（功能货币）thecurrencyoftheprimaryeconomicenvironmentinwhichthecompany②Reportingcurrency（报告货币）：thecurrencyinwhichtheparentcompanypreparesitsfinancialstatements.③Foreigncurrency（外国货币）：anycurrencyotherthanthefunctionalcurrencyofacompany.Localcurrency（当地货币）：thecurrencyofaparticularcountrybeingreferredto.⑤Exchangedifference（汇兑差额）：thedifferenceresultingfromtranslatingagivennumberofunitsofonecurrencyintoanothercurrencyatdifferentexchangerates.⑥Foreignoperation（国外经营）：asubsidiary,associatejointventureorbranchwhoseactivitiesarebasedinacountryotherthanthatofthereportingenterprise.U.S.

Functionalcurrency:dollarLocalcurrency:dollarForeigncurrency:pound,euroReportingcurrency:dollarSubsidiaryin

inAccountpayable:pound→Separate/dependentFunctionalcurrency:euro/dollarLocalcurrency:Foreigncurrency:BritishpoundReportingcurrency:U.S.dollarTranslation②Currentratemethod（现行汇率法--allforeigncurrencybalancesheetandincomestatementaccountsarerestatedin