This essay focuses on what must a company disclose abou its EPS?This assignment will allow you to become familiar with the FASB Accounting Standards Code (ASC).Finally, Follow these instructions to gain access to the Codification:
Assignment– Accounting 202 –Spring 2018
Due date-Last day of class
This assignment will allow you to become familiar with the
FASB Accounting Standards Code (ASC).
Follow these instructions to gain access to the Codification:
Navigate to http://aaahq.org/ascLogin.cfm
Accept the terms and conditions of site usage.
Firstly, Prepare responses after reading the following 2 exercises.
Finally, Provide Codification references for your responses.
Merliss Company (a specialty boat-accessory manufacturer) is expecting growth
in sales of certain low price products. Merliss is thinking about a preferred stock
issue to help finance this expansion. The company is leaning toward issuing participating
preferred stock so as not to dilute ownership. Investors will get an extra dividend if the
company does well. Merliss wants to be sure that all reporting for this transaction is
proper and transparent.However, The company asks you to research disclosure requirements
related to its capital structure.
A. Identify the authoritative literature that addresses disclosure of information about
B. Find definitions for the following:
2. Secondly, Participation Rights
3.Further, Preferred Stock
C. What information about securities must companies disclose? Discuss how Merliss
should report the proposed preferred stock issue.
Access the glossary (“Master Glossary”) to answer the following:
1.Firstly, What is the definition of “basic earnings per share”?
2.Secondly, What is “dilution”?
3.Further, What is a “warrant”?
4.Lastly, What is a “grant date”?
For how many periods must a company present EPS data?
For each period that an income statement is presented, what must a company disclose about
If a company’s outstanding shares are increased through a stock dividend or a stock split,
how would that alter the presentation of its EPS data?